the joint committee on finances, uh, subcommittee on
revenue and the committee on health and human relation is
hereby called to order. This is a subject matter here in
you all, in which we're going to discuss the consideration
of regulation of hemp products in the city of Chicago. And
we're not taking any, um, votes on this matter. But with me
today is, uh, she is the vice chair of our health and human
relations committee and I would like to ask her to take our
role
Hello. Good morning everyone. Um, I will start off with um,
alderwoman Pat Dao.
Alderman laspada.
Alderman, Lamont Robinson.
Alderman yansi.
Alderwoman Harris.
Alderwoman Gutierrez.
Alderman Lopez.
Alderwoman Taylor.
Alderman Mosley.
Alderman Rodriguez.
Alderwoman Fuentes.
Alderman brunette.
Alderman.
Alderwoman Cruise.
Alderman Conway.
Alderman Vasquez.
Alderman, Knudsen.
Alderman Lawson.
Alderman. Martin.
Alderwoman manana hoppenworth.
Alderwoman Haden.
Thank you, m.
Non members.
I think you um, at the
We don't need a roll call for a subject matter. Are you
saying you want to roll? Yeah, that's what we were doing.
Thanks.
You said what?
That was just committee members.
Committee was great, the knowledge, the non committees.
yeah, so I want to knowledge at this time of order, Martin
Gardner, OSHA and More in Cardona who would number is at
this time. And at this time can I have a motion to allow
the following orders? Whereas Sanchez Harris Taylor Fuentes
kitson Lawson Marie um Mana hoppenworth Haden and Scott to
attend this meeting by remote meetings. Can I have a
motion?
Motion made by Alderman Mosley all in favor. Can you all
say I
All those opposed an independent of the chair of the eyes
have it, can we confirm that order woman Rodriguez? Sanchez
is online.
Harris.
Taylor.
Uh, Taylor alderwoman Taylor.
1 tests here.
Uh, kutson.
Lawson presents Mana hoppenworth.
Uh, present in person, I'm sorry.
That was a rookie mistake, that's fair. Uh, all the women
hadn't.
Present.
all the, all the woman Scott,
Who's the number?
And all the womanly is joining us in person. At this time,
we're going to have some written uh, public, uh, comments
that have been submitted uh, over 41 to be exact and we're
going to first have our our first virtual call-in
ravenwest, worthy who signed up to speak remotely uh during
this time
Raven. Thank you.
Thank you, I'm here.
Hi, my name is Raven, and I'm the owner and creative
director, of urban, Jen events. And I am a tax paying
company.
Through Urgent and events. We're able to connect with our
community, in a unique way. We provide brunch and pop-up
dinner experiences throughout the Chicagoland area.
And our goal is to introduce him, and CBD Properties to
communities. And the distinctive setting by allowing our
guests to experience infused culinary and a safe, relaxed
educational environment.
For 3 years, we've invested in our business and align with
Community leaders to decide him.
But the fear-mongering that is presently happening is
setting the tone of years past.
In case you're wondering, I'm referring to the War on
Drugs.
The platform was similar, protect our kids protect the
community. When in fact, it did the exact opposite,
Safety for our community. Safety for our community, is our
greatest and has always been our priority.
We've been responsible, making sure that everyone that
enters our doors are at least 25 years and older.
Our protocols ensure that no underage persons are allowed
to enter or partake in our events or products.
we go above and beyond to protect Public Safety, ensuring
that guests, that partake are educated on responsible
consumption, and that guests that purchase products at the
events are giving a free. Cashback, that locks
Which are provided by the equity Coalition of Illinois.
All of our products have certificate of analysis and are
properly labeled.
We've been told how great our events and products make
people feel.
We've been told that our events provide pain relief and
place our guests in a more relaxed State of Mind. We've
been thanked for providing a safe space for our guests and
our community and we are grateful to our community for
allowing us to create that space for them. We look forward
to continuing to provide a safe educational, relaxing,
space and more jobs to the community that we impact. Thank
you.
Uh thank you so much at this time. The uh again the
committee on finance and subcommittee or Revenue joint uh
with the committee on health and human relations. We are
going to have our public comments, uh, at this time, uh,
we're going to limit them to 3 minutes. Uh, all we ask is,
we're going to disagree, that's fine. Uh, we will see
things different, that's fine. But there's no need to
disrespect dishonor, our children are watching. And so at
this time, could you, uh,
Start our public Comm. So as we call your name, if you can,
um, head over to the mic. So first, we have Craig cats.
Thank you. Good afternoon, Mr. Chairman Mr. Chairman woman
who I believe is remote and members of the committee. Uh,
my name is Craig Katz and I'm the director of government
relations and compliance for CBD Kratom. We are the largest
privately owned hemp CBD company in the United States. With
62 stores and 5 States, including 15 in Illinois of which 6
are in Chicago and 4 are in the immediate suburbs. I'm also
on the board of directors of the Illinois healthy
alternative Association, which is an association of
businesses advocating for the legal hemp CBD industry.
while my company is relatively large for the hemp industry,
most of our members, indeed, most stakeholders in the
industry at large are small businesses. Many of which are
minority or woman-owned the legal hemp CBD industry,
affords opportunities, to those groups that aren't just
aren't available. Uh in the federally illegal marijuana
industry. We're often the minority participation is only
offered so that larger companies can meet social Equity
criteria.
uh, many of the products that you see uh displayed at press
conferences by public officials, whether elected officials
or law enforcement officials. Are the products that look
like, uh, gummies or, um,
Doritos or kids candy. Most of the people in our industry
And in fact, almost everyone in our association does not
sell those kinds of products. We are absolutely in
categorically.
Against those products. And
It is a disservice when they are constantly held up as
being the emblem of our industry. It it's just not what we
do. The people in our industry are mostly good actors. Not
bad actors. We want the Bad actors out. If the Bad actors
are still in there, they make us look bad and they make
everyone else look bad.
uh, legal hemp and CBD products are perfectly safe when
manufactured and sold under appropriate conditions,
we maintain strict, testing and Manufacturing standards
City of Chicago can assure such safety with reasonable
regulation, that products, the public encourages, and
businesses and produces much needed Revenue. I spent 4
years in this very building as Council to the committee and
Municipal Code revision during the Washington
administration. I know firsthand that the council can craft
regulations that accomplish our respective goals without
shutting down an entire industry, costing thousands of jobs
while denying the city its share of tax and Licensing
dollars. That could be used to provide services to the
people of Chicago. We welcome the opportunity to work with
you and your staff to create regulations that will benefit
and protect all the citizens of Chicago. Thank you.
Yeah.
At this time, we want to also acknowledge non-committee
member alderwoman, Lee and Committee Member Alderman
Rodriguez.
Also, down from uh Springfield. He's more than welcome to
come down and sit with us uh state senator Willie Preston.
At this time. Yeah. Clap it up for you, appreciate you
willing. At this time. We're going to have uh, Ry uh Stout
uh for public comment.
Good afternoon everybody. My name is Ray Stout. I'm the
executive director of the Illinois. Craft Brewers Guild. We
are the trade organization that represents all the craft
breweries in the state of Illinois. Including the 70 right
here in Chicago.
Um, I come before you to ask for common sense, regulations
be passed in Chicago.
That and any future decisions made by this body or any
other City agencies, do not prohibit, craft Brewers from
producing and selling THC beverages.
The Illinois, craft brewing industry is an established and
trusted manufacturing sector.
It plays a vital role in communities throughout the state.
Every Day, Chicago Brewers are relied upon to produce high
quality legal products, report production to state and city
agencies. Pay taxes, ensure compliance with state city and
federal guidelines and responsibly sell products for on or
off premise consumption.
This well-regulated system has helped build consumer trust
and it is the framework. I believe should be extended to
hemp-based THC beverages.
the potential for hemp-based THC, beverages Market is
significant if we look to Minnesota
Where regulation structures have been put in place. They
saw 1.5 million in tax revenue over the first 2 months of
legalization.
The industry has generated over 15 million dollars in sales
and Chicago could tap into a similar Market generating,
millions of dollars for revenue for the city state and
County.
Well, Illinois is yet to pass legislation.
Specifically, regulating THC Beverages and food.
Um, bills have been introduced in the Illinois, General
Assembly myself and my partners are working on them daily.
Crap. Brewers in Illinois, support more than 5,000
full-time. Full-time jobs.
And contribute 3 billion dollars to the state's economy.
A lion share of that is right here in Chicago.
However the industry has faced significant headwinds
recently. We've seen 40 breweries close over the past 2
years.
The opportunity to produce and sell THC, beverages could
provide a vital Lifeline to these businesses that are
gathering places and Wards across this city.
Um, we need to make sure this industry remains viable and
continues to contribute to the state's economy. And for
these reasons, we asked Chicago city council to support
Illinois, Craft breweries and their efforts to manufacture
and sell hemp-based THC beverages.
we believe this would not only benefit the Brewing Community
Community as a whole, but offer new economic opportunities
to the city of Chicago and the citizens of Illinois. Thank
you.
At this time, I want to uh acknowledge uh Alderman viez,
Chico and Curtis in Halo Ramirez at this time. Um
Gutierrez. I'm sorry at this time. I want to um, welcome to
the mic. Uh, Janice
My name is Dr. Janice MLA and I'm a physician with 20 years
of experience in geriatrics and hospice and palliative care
medicine.
I'm like many others here. I am. Not an owner of a hemp
business, nor am I a consumer or even some sort of paid
consultant I am here, because I believe in Alderman, Hall's
proposal.
I believe it is the best plan to keep hemp products
available to those who need them while ensuring Public
Safety.
Alderman. Hall's proposal protects children by requiring
stores to sell only to adults over 21 and banning products
with packages that could appeal to minors.
It also protects patients by mandating accurate labeling
and strict testing for contaminants.
Emerging research, highlights. The benefits of hemp derived
products such as CBD, CBG and thca. For example, in some
recent conferences, I've been to for cannabis clinicians,
multiple physician. Experts have recommended using an
extract or a tea made from thca as an option for treating
nausea and inflammatory pain, especially people who could
not tolerate the intoxicating effects of THC.
promising animal studies also suggest potential benefits
for conditions, like metabolic syndrome and Alzheimer's,
I'm hopeful that all ongoing research will continue to
uncover these benefits.
As long as it isn't, hindered by unnecessary administrative
and legislative roadblocks.
Banning federally legal hemp in products in Chicago, will
not affect be effective in limiting access. People will
just buy them online where there are no ID checks or
quality standards, look at fireworks. Despite local bands,
numerous local backyard displays still happen every 4th of
July in Chicago people.
Attain them from a neighboring states. Similarly, a hemp ban
ban won't eliminate availability but rather it will push
people to use less regulated potentially unsafe sources.
By regulating hemp, now we can protect the public maintain
access for those who need it. And what's more it will
create a regulatory framework. That could be used in a
future where all cannabis products are federally legal.
Given all this. I strongly advocate for all Alderman,
Hall's proposal and energy to consider its importance for
both safety and accessibility, thank you for your time.
Next, we have Chris AI Aida Aida.
Hello everyone. Good afternoon.
My name is Chris and I'm a business owner here in Chicago.
And I'm here to speak today in support of the fair and
balanced hemp regulations, that will benefit our city is
the residents and small business owners like myself.
Now, as the Chicago in, I know how important it is for the
city to create new opportunities for cash flow. Uh, a
well-regulated hemp industry will do just that by
supporting entrepreneurs creating jobs and generating tax
revenue to help fund essential city services. Now, Chicago
needs industries that drive growth and hemp is a natural
fit.
Unfortunately, we've seen all the Cannabis licensing
process has created, significant barriers shutting out,
many business owners.
These restrictions have left small businesses at a
disadvantage, hemp offers a fair alternative and a chance
for small business owners to compete Thrive and contribute
to the city's economy. While the same uh,
Yeah, helps contribute to the city's economy. Excuse me
there, but habit, isn't just about business. You know, the
bigger aspect of this is the health and wellness side of
it. And so happy to drive products, provide a natural
effective alternative, for people who are looking for,
relief from pain, anxiety, or other health issues. I've
seen countless customers turn to hemp products when
traditional medicine has failed them. And I've seen a lot
of my family do the same.
Making these products is making these products accessible
through thoughtful regulation can and will improve lives.
While ensuring safety for consumers at the same time. A
thriving hat Market can help the city financially.
Hemp is an opportunity to boost both public health and
economic growth. It's literally the win for everybody.
I urge lawmakers to create regulations that prioritize
safety fairness and opportunity. Let's make, let's make
sure hemp products are high quality properly. Labeled
accessible while giving small business owners, a chance to
grow and succeed. Now, Chicago has the opportunity to lead,
by example, by creating a safe and thriving industry that
benefits its cities and its residents.
Thank you guys for your time.
Thank you so much at this time. At this time, we will have
TJ TJ Joshua
Good. Good afternoon, my name is TJ Joshua. I'm a licensed
attorney in the state of Illinois and the father of 2
teenagers ages, 14 and 15.
I appreciate the op.
I appreciate the opportunity to speak today, in favor of
implementing Smart, Balance regulations for hemp in our
city.
I believe this initiative presents an opportunity for safety
fairness and economic growth.
as a parent, the protection of our youth is a top priority
for me, regulating hemp is crucial. As it establishes
important safeguards such as age restrictions proper
labeling and rigorous product testing.
These measures are essential to prevent access to these
products by minors implementing. A requirement that hemp
products be sold only to adults aged 21. And over is a
common sense solution that promotes responsible
consumption.
Moreover, I uh I view this uh regulation as a significant
Economic Opportunity.
Partially for communities of color, particularly for
communities of color. Uh, the current landscape for
entering the marijuana industry can be prohibitively
restrictive and costly, making it difficult for minorities
and people of color to participate.
Hemp offers a more accessible pathway for investment and
Entrepreneurship by enacting fair and thoughtful
regulations. We can Empower small businesses and minority
entrepreneurs to thrive with this uh, within this emerging
sector.
This issue extends Beyond mere business interests, it is
fundamentally about equity.
hemp products, provide an affordable, safe and non-toxic
and option for wellness and health, that should be
accessible to all
By fostering a market where responsible business owners can
succeed. We can ensure that these products remain safe and
out of the hands of children.
I strongly urge this Council to support Fair regulations,
that not only protect Public Safety, but also create
economic opportunities.
Particularly in underserved communities.
This is a pivotal moment for our city to embrace the
potential of hemp providing safety access and equity for
everyone.
Thank you.
Our next speaker is midea goriano.
Hi everyone. My name is midday cordiano. And I want to
speak on the behalf of as I am a hemp user.
for a long time, I helped strong negative negative opinions
about the hemp and cannabis primarily based on
misconceptions. And the lack of exposure that perspective
began to shift when I entered the Cannabis industry. I
started off at CBD Kratom and then I transferred to Chai
Tiba.
And had the opportunity to experience its offerings
firsthand. I explored both marijuana and hemp products but
I quickly realized that marijuana was too overwhelming for
my body. Initially, I thought about seeking medical advice,
but instead I decided to give hemp a chance using hemp
based products turned out to be more transformative
experience for myself and that's just an understatement. It
completely reshaped my perspective on how to approach life
and wellness. Before discovering Health hemp I struggled
with constant anxiety and unease. It's frustrating to see
the media misrepresent hemp as is harmful drug. When in
reality, it's an herb with centuries of history and natural
medicine much like marijuana hemp offers numerous benefits,
but it also caters to those seeking a gentler more balanced
experience.
What stood out most about hemp with its ability to provide
relaxation, without being overpowering. It allowed me to
calm my senses. Focus, my thoughts and find the balance
during stressful times unlike marijuana hemp offered a
gentler more manageable way to support my mental and
emotional well-being.
The variety of hemp products available has been a game
changer for those of us who prefer a mild effect. There are
still options invaluable offering a sense of calm without
the intensity of a higher THC product at the same time.
Hemp accommodates users. Who desire? Something stronger as
well? It's versatile and inclusive personally. Delta hemp
products have helped me maintain my mental Clarity, manage,
my daily stress and has helped me, stay grounded.
At the same time, personally, they allow me to show up as
my best self, both personally and professionally enhancing
enhancing my ability to serve and support those around me.
It's troubling to imagine losing access to something that
has been. So transformative for my life, I hope to see more
advocacy for hemp and open-minded perspective for
dispensaries and media Outlets alike, ensuring these vital
products remain accessible to those who truly need them.
Thank you.
Yes.
Next up, we have Reese Xavier.
Good afternoon. Uh thank you for giving us the opportunity
to uh share our views today. I really appreciate that. I
also want to acknowledge the real social Equity, cannabis
team, that's over here.
Please stand up stand up because we are here.
Minority owned cannabis companies are here in Illinois. We
worked our butts off to get these licensed. I have a couple
of brief statements that I, I like to get through pretty
quickly. My name is Reese Xavier. I am the CEO and managing
partner of ht23 Growers. We are a 100%
african-american-owned craft, bro. Cultivation. We are the
true definition of social equity.
Since 2016, I've dedicated countless of hours, not only
earning the license in 2021, but also towards making it
operational. This journey involves significant sacrifices
from not only me, but my family, and those, in the family,
of those who worked alongside of me,
our sacrifices were not just about the opportunities of
this license brought us
But more. So about the economic potential, it offers for
our partner community.
Having grown up in Chicago's Rossland area, I've witnessed
firsthand the economic shift in that Community for those in
my age range. Know exactly what I'm talking about.
These experiences drive my commitment to today.
Now, all of that is under Threat by an unfair and uneven
system. I want to be 100% clear hemp, and cannabis comes
from the same plant.
But the rules are not the same.
The rules are not the same.
When hemp is chemically altered and synthesized to provide
an intoxicating effect like cannabis
It is illogical to apply different regulations.
If it gets you high, it should be regulated under the
Illinois, cannabis regulation.
While these products are federally legal due to a loophole
in the legislation, the federal government has signaled
that this Market is unacceptable and was not the intent of
the 2018 Farm Bill.
If it gets you high,
It should be regulated under Illinois's cannabis
regulation.
Now, this is not about the many non- intoxicating
byproducts that could be made from him. Some of the folks
talked about it today.
This is not about that.
This is about chemically altered.
Intoxicating hemp, derived products with dangerous levels
of THC. I just saw a product today with 450 milligrams in 1
gummy
In Illinois, cannabis Market, the most products you can buy
in a dispensary trip, is 500 milligrams. Meanwhile, there's
a package being sold with 1 gummy.
With 450 milligram, that's dangerous.
It's about.
Consumer safety. This is about protecting Illinois.
Consumers, this is about protecting Chicago residents.
Thank you so much for that at this time. Um, we will have
uh, some raced out race Stout.
Oh he was. I'm sorry.
Uh, next we have agmet, do they?
Ahmad.
Did I say that, right?
88.
Got the last 1. That was it, all right?
Hello, city council. How are you guys today? Uh, so, you
know, we came today, uh, to support the cannabis.
I have uh dispensaries in Illinois. We also have a
cultivation in Rockford. Uh, we followed all the crta
guidelines while hemp uh, is sold on regulated and smoke
shops. And, uh,
And uh liquor stores and convenience stores. I think it's
fair that, you know, we set, you know, guidelines and
regulations. That
They follow the same rules that we follow. It's not fair
that we have to go through testing. We pay all the taxes on
it. We pay uh, a $30,000
Dispensary. Uh the dispensary license renewal every year.
Uh, we go through all the regulations, we go through
inspections, we go through C to seal. Uh, we actually, we
have cameras in our stores and our dispensaries and
cultivation that are that are watched by the state and
Illinois State Police 24/7. So I think it's, uh, it's fair
that they follow the guidelines that we follow and, uh,
that, you know, they follow, they, they abide by the crta.
That's all I have. Thanks.
Thank you at this time. JJ Joshua.
Wright.
This time, uh, Allah saying it correct.
Everybody. Um, while I don't disagree with the gentleman
from social equity.
I believe there should be regulations. There should be
standards safety guidelines for our industry. I do disagree
with the fact that we should follow crta guidelines. We are
a hemp industry that was built off of
uh, guidelines success that
We started, I started my company back in 2019.
and,
that's soon after, when the CBD was discovered,
in 2019, uh,
Dbd. Hold on.
Yeah.
No. Okay. Business owner and the board member of the ihpa,
my colleague and I have been tirelessly advocating for
sensible regulations in the app industry. We are committed
to promoting standardized testing. Clear packaging,
guidelines and age restrictions of 21 and older.
These measures are essential for ensuring the health and
safety of both our children and regular consumers.
Unfortunately Falls claims about our industry being
unregulated untested and unsafe. Let lawmakers to doubt our
integrity. We as an industry strive to provide our clients
with quality certified lab tested products that are safe
for youth.
We are being demonized by cannabis industry Giants that
want to monopolize the hemp industry and shut down all of
our small businesses.
I have worked incredibly hard to build my business from the
ground up and I refuse to let the big cannabis, put us out
of business and take food off my children's table.
We are responsible, um, business owners advocating for
sensible safe regulations. That will provide a second
chance for individuals like myself and my fellow
colleagues.
Thank you. Thank you.
So at this time, we will have Tyrone Muhammad.
Definitely not 10 work. I got your fellow almonds
permission, so here, uh, the hearing, you know, I'm sitting
here listening to this crap.
And Walter Bernett to tell you, when me and him had a beef.
When I told him, we not gonna be in the Cannons space,
you're about to get all these licenses to white men.
Not white women either.
why y'all support white men and this illegal industry,
that's federally illegal, we sitting here talking about a
federally illegal cannabis industry over a federally legal
hemp space.
That's some hypocrisy of legislators. And I'm not going to
sit by and look at the elephant in the room JB prisca and
the the racism, a banana Hopkins that y'all playing with us
right now. We spent 50 years going to prison for cannabis
And you still haven't fixed the Wall Drugs.
I Community still messed up by that.
And we are going to tell me that that social Equity, cause
you fought for a license. I don't know. Nala, ex-cons in
the space of cannabis who spent, who spent all these years
regulating or out building a black market that is Canada.
You only going to make increased drug sales and crime by
limiting certain markets cuz we can destroy the Cannabis
industry today.
While y'all seen the plan, y'all won't have no licenses
that matters because you won't make no money because the
streets will be flooded.
Y'all tripping and here we are. We've hired over 50, black
women and men in the space that we are. That kind of feel
good for me, as somebody who spent 21 years in prison
creating jobs and then putting forth ordinance to tax our
own business to help the city.
That don't make no sense who doing that.
And then we got a cannabis governor who gave all the
licenses to his cronies. Everybody that votes against I
really want to look at all our elected officials D. Tools
to see how much money big cannabis is pumping into y'all
campaigns.
Because this is in lies, the reason why you would destroy
something that's federally legal.
I don't want to understand that we sitting here saying, we
believe in everything, the Cannabis industry says in
regulation.
And not put candy. We don't sell that.
I I'm in I'm in Ultimate d, uh war and she hasn't been 1
time in my dispenser.
I'm in Walter, Bernese war with a new location and he
hasn't visited my store 1 time. And we're about to open 2
or 3 more and and and I these all them is do not support
black businesses. Like we say, they do but we it talking
about regulation and I appreciate that because I know I can
pick up the phone and call and say, hey, get over here but
thank you.
All right, you all um thank you so much for your public
comments. Uh I do want to uh Circle back and confirm um
older woman Hatton. Um, older woman Fuentes Alderman Lawson
Lawson. And number ULM, Miss Scott are, uh, virtual per the
motion made by almus Scott. Can we confirm that?
Okay, yes, there we go.
Everyone else here.
Okay. Also this presence on routes to the hall.
Okay, thank you so much. Also want to recognize, huh? Sorry
chairman. This is Haden present as well. Did you not hear
me during the first roll call? Oh no, I didn't hear you.
Thank you so much. Also we wanted to uh recognize Alderman.
Uh Scott, I mean Alderman Robinson, as well as all the
women. Uh new uh newent today. Again you all this is a
subject matter Hearing in the subject. Number 1 is
regulation and making sure that our children are safe. Uh,
it's not a talking point, it's a reality also. Secondly, we
want to make sure that there's Clarity on what exactly the
law is surrounding. Uh, hip. Uh, and then, thirdly, we want
to hear from those who are in the industry. Uh, what we do
know is that, uh, as we've heard cannabis has gotten things
wrong, and there's things that have gotten wrong in the
hemp industry. And so, as a city, we want to get things
right. The city is not bought by Industries and this is led
by the people of Chicago. And so with me, I wanted to also
share our opening statement with uh the vice chair of uh,
health and uh
Human relation, hi everyone, good afternoon. Um, it's really
great to see the chambers full and really great to see. So
many of the Alders, it's a testament that this subject
matter touches every part of us, whether it's our children,
our community and really all the neighborhoods in the city
of Chicago. I think that there's a lot of enthusiasm in the
room but a lot of eagerness to not only discuss the subject
discuss the subject matter but to have the opportunity to
take action, right? Because we want to find Solutions
around this to make sure that our neighborhoods are safe.
It's important to, to note that, although, this subject
matter tends to, um, circle around finances, it's a joint
committee meeting for a reason. Um, it's important to note
that health is at the center and at the core of this
conversation, I am very thankful for cdph for bacp and for
working alongside Alderman Hall to bring forth these
regulations, these Solutions um to keep our children and
our neighborhoods safe. So thank you so much for everybody
being here. Um, and really interested to, um, hear all of
your questions and and comments, because we want to make
sure that we're able to move this forward. Thank you. Thank
you so much. And again, you all, there's no ordinance,
not here to write an ordinance. We're here to take away the
curtain and make it, right? So at this time we have uh Rod
not, he is a cannabis business, law attorney. Uh, he's
joining us virtually and he is the author of the Cannabis
business law. And so,
What you need to know about uh cannabis and so he's with us
virtually and at this time he's going to share with us
aspects of the legality around him.
Thank you so much rod.
Thank you. Hello. My name is Rod kite and I'm honored to
speak with you all today by way of a little bit of
background. I'm an attorney who represents businesses in
the Cannabis industry throughout the US and the world. I
authored what has become known as the source rule which is
widely credited as the primary Legal Foundation for the
Contemporary hemp Market in kanabo and hemp products, I'm
the editor and chief writer for the kite on cannabis law,
blog and author of 1, of the first books on cannabis
business law, I've served on The Advisory board for the
American Journal of endo medicine, which is the only
peer-reviewed printed medical journal in North America.
Additionally, I've been part of the legal teams in several
high-profile cases against the DEA and various state
agencies regarding hemp. I've drafted and presented
cannabis legislation to a foreign head of state testified
to the FDA about CBD and THC and served as an expert
witness in cases involving him. I'm here today because
Chicago has a unique opportunity to leverage the city's.
Burgeoning hemp industry to support small businesses,
protect both children and adult consumers and to take a
proactive.
Active role in remedying some of the disastrous effects
that the drug wars had on the city's residents in short
hemp is the future of smart cannabis policy.
You may have been told that the hemp industry was built on
an unintended legal loophole.
That's false. In fact, the opposite is true in response to
the exploding. Hemp consumer product Market that arose in
the wake of the 2014 farm bill, that legalized Industrial
Hemp for the first time in almost a century Congress
expanded, the definition of hemp in 2018 to specifically
include all of its quote, derivatives extracts, kanabo
isomers acids, salts, and salts of isomers, where they're
growing or not, this comprehensive and specific list of
compounds and ingredients. Only make sense in the context
of a robust consumer product industry. Far from being based
on a loophole the hemp industry has solid footing and what
my law professors referred to as the plain language of the
law.
Unfortunately, the groups that most often use the term
loophole to describe the hemp industry, are the very groups
that Lobby for an industry that operates completely outside
the bounds of federal law. I'm referring of course to the
federal illegal marijuana industry in Illinois. As in many
states, the marijuana industry is primarily controlled by a
small handful of large corporations. The main reason that
the marijuana industry lobbies against the hip industry is
economic, it wants to eliminate an industry that it deems
to be a competitor. This war against him is occur
throughout the country. And despite the rhetoric you'll
hear about safety and robust regulations, both of which the
Industry supports and promotes the real issue before you
today is 1 of Economics. Namely, will Chicago's cannabis
industry, be controlled by a small handful of corporate
marijuana, and collaborates operating outside the bounds of
federal law. But will it be open to small businesses and
minorities operating within the bounds of law? While
offering consumers a wide array of safe choices.
Unlike marijuana, which remains a schedule. 1 illegal
substance under federal law. Cannabis meeting the
definition of hemp is lawful and has been completely
removed from the list and controls substances under both
Federal and Illinois state law.
In 2018, president Trump signed the current version of the
farm bill, which doubled down on the legal status of hemp
as it defined in the 2014 Farm. Bill recognizing the rapid
rise of a hip industry based on consumer goods, including
Edibles and inhalables Congress. Dropped the industrial
Monitor and dramatically expanded the definition of hemp to
include numerous options for creating a broad array of
consumable products. This broad definition which federal
courts have found. By the way to be quote unambiguous has
fueled a national cannabis Revolution that empowers
farmers, small businesses, minorities and consumers to
produce, processed manufactured and to consume illegal
cannabis products in the form of hemp.
Since the 2018 farm bill is enacted many states have enacted
sensible, hemp regulations to safeguard children ensure
that adults have access to Safe, products, and fund
Municipal, and state coffers with the tax revenue. That
these products, provide all while supporting small
businesses that operate within the law, Chicago should
seize this opportunity to properly regulate rather than
eliminate a burgeoning legal industry. That's welcomes. All
responsible participants from large corporate conglomerates
to small and minority owned businesses.
Now despite the rhetoric that him companies are somehow
opposed to regulation the truth and you've heard this
already is that hemp business owners have been lobbying for
robust, temp regulations to boast Chicago in the state for
many years. And since November Alderman, William Hall has
been engaged in a debate on how to best regulate and tax
derived products, and the businesses that sell them in the
city of Chicago, this ordinance includes a ban on the sale
of intoxicating. Hemp products to underage minors, and a
ban on the sale of untested and poorly manufactured.
Synthetic hemp compounds Alderman. Hall's approach aligns
with hemp injury supported proposals, across the country
which include age verification to ensure that intoxicating
products are not sold to minors, quality manufacturing
processes. So the products are safe and labeling packaging,
testing and chain of custody requirements. So that adult
consumers can make informed decisions about the products,
they choose to consume notably. And this nothing in
Alderman, Hall's proposal or the hip industry's proposal at
large restricts,
Marijuana companies from opening their own hemp divisions
and competing on a fair playing field. Now this is a stark
contrast to the state of the marijuana industry generally
where most of the licenses go to only a select few of the
most well-funded corporations and where the lip service
given to social Equity licenses, usually belies a system in
which minorities actually get the short end of the stick.
This is 1 of the reasons that Illinois is currently being
sued by a minority cannabis business. Hip offers a fair
playing field to all
Every industry has Bad actors and the best way to get rid
of them is to enact sensible regulations Banning help will
simply Drive The Bad actors in their products underground
where they cannot be regulated or taxed while eliminating
hundreds of law-abiding, small businesses.
the legitimate hemp industry wants Dynamic, open markets,
appropriate Market entry thresholds for all cannabis
related, product categories, and Fair competition what the
owners of hemp companies don't want is for their businesses
to be taken away and the spoils consumed by a small group
of well-funded corporate marijuana conglomerates. So, in
conclusion, my the question today is this well, the
Cannabis Market in Chicago. Be controlled by a small group
of large vertically, integrated, federally illegal
marijuana corporations or will it be open to both
corporations and to small businesses representing diverse
backgrounds and experiences? In a very real sense. This
fight pits Wall Street against Main Street. I'm here today
on Main Street represented in this context,
By the hemp industry.
Thank you for your time for your consideration. I sincerely
hope that you will enact sensible regulations that preserve
the city's vibrant hip industry, while protecting its
children and consumers
Thank you so much. Um,
few things that, um,
Few things that we want to note number 1. We're not going
to rush, but we are going to get to the point and our
speakers note that they have if they want to use 8 minutes
but why I have, he's still there. Um, Rod Knight. I have a
question. What's the difference in my colleagues? If you
want to ask questions, you are as well. What's the
difference uh between marijuana that people use to get high
and hemp? All right, could you answer that question?
Sure absolutely well we're told we're talking about is
cannabis right. Cannabis is a Botanical term under federal
law and it's divided into um hemp which is not a controlled
substance and marijuana which is and the sole distinction
between the 2 is the concentration of 1 compound Delta 9
THC. If the Delta 9 THC concentration exceeds 0.3% then it
is marijuana if it does not exceed 0.3% then it's hemp. So
just by definition hemp contains lower concentrations of
Delta 9 THC,
Thank you. Anyone have any questions?
Alderman. Ervin.
Hey, thank you, Mr. Chairman, uh, quickly, uh, that
determination based on the percentage, uh, if that
percentage is for lack of a better term, manipulated to be
increased. Is that still hemp? Or is that cannabis?
Well, if the Delta 9 THC concentrations exceed 0.3%, then
again, by definition under both Illinois, state law and
federal law. Um, it does no longer help, uh, it is
marijuana, but it's a, it's a bright line difference. Um,
in terms of of the potency or um if it's no more than 0.3%
Delta 9 THC, it's hemp, if it's more than 0.3%, Delta 9
THC, it's not hemp.
Okay, hey hey, whoa, whoa. Whoa. Let me let me, let me tell
y'all something. Just for a second, let people articulate
theel. Now, I understand y'all passionate understand, you
got a position, but at the end of the day, people need to
hear this clearly because we are trying to get it, right?
So if you can hold your applause, or if you're that
passionate, you can step outside.
But could you repeat? That answer. 1 more time.
Sure, I'm happy to. So um, by definition again, under both
federal law and the laws of Illinois, um, the the
distinction between hemp and marijuana is the concentration
of Delta 9 THC. So if Delta 9 THC remains below or actually
up to 0.3% Delta 9 THC. Um, it is legal hemp if it exceeds
0.3% Delta, 9 THC, then it is um, marijuana.
Is that at the, is that at the beginning or at the end?
Um I don't I'm not sure quite understand your, your
certainly. I guess my question is if the if the product we
is grown and it doesn't have as you say the point 3, but
through some other process it increases above the point 3.
The my question is, what your definition at Point 3? Is it
at the beginning? When it's coming out, the ground per se
or at the end when it's in the package, given to the
consumer?
Sure. I I think the best way to answer that question is to
talk about the USDA rules, which regulate hemp production
states are allowed to propose plans that the USDA um can
approve um not to get too into the weeds there. But the
bottom line is, the USDA has set a regulatory framework for
hemp. And what it says is that in order to for a hemp
farmer or cultivator to harvest, the hemp plant, they have
to pass, um a a test, they have to have their crops tested
and if that
That, um, if that Delta 9 THC level exceeds 3%, then that
hemp crop is is is not deemed to be hemp and depending on
the state, they either have to destroy the crop outright or
they have opportunities to, um, remediate it in some way.
Um, so that's part A, if, if if it meets that definition of
no more than 43%, it can be harvested at that point. We're
looking at the definition of hemp. There are no further
mandated Federal tests, although some states do mandate
testing. Um, but but again it's it's very clear if the
Delta 9 THC levels in a hemp or hemp product exceed 0.3%
then that is marijuana if they don't then that is him.
so, so then just so for my own Clarity and notification If
the product coming out the ground tests and meets the 0.3%
level or below, then whatever happens to it after that
point is of no consequence.
Uh, I'm not sure that that's depends on, on the states. A
lot of states have different regulations again, the the and
then the consequence. But, um, and I'm really wanting to
sort of answer your question. But the, the hemp itself
again, is defined whether it's in the ground or outside the
ground, as cannabis with no more than 0.3% Delta 9 THC. So
certainly, if THC, Delta 9 levels go above that at some
point. Well, then sure it is no longer hemp. If the Delta 9
levels, do not go above 0.3, then it remains help. So so
maybe that's a more helpful way to look at it.
But again, it's a, it's a pretty bright line focused on
Delta 9 THC, concentrations, okay? So then based on your
based on your testimony, if it lands above that after
process or whatever happens then it becomes cannabis
theoretically based on what you just stated.
Um, potentially sure. I mean, this is 1 of the things that
that people in the hemp industry face, you know, the
different Industries, have different burdens. And so if um,
um, you know, if if a a hemp operator is in possession of
of, by the way, it's all cannabis, botanically speaking,
it's all cannabis, legally speaking, we have hemp and
marijuana. Um, so, um, certainly if, if you know someone in
the hip industry, uh, is in possession of of flour or or
some other product that has more than 0.3% Delta 9 THC
either, because somehow or another that they, you know,
it came to them in that way. Um or because you know some
these this is a a product just like any other at least the
flower is um like any other natural product. There is sort
of a change in evolution. You know, if you have your um you
know your fruit that you buy at the market and you and you
leave it on the counter after a week or 2. Um it's going to
change right? You know it's going to ripen and things are
going to happen. Well with with at least the flower um that
changes changes can occur over time as well and and 1 of
those changes.
Can be that the Delta 9 levels um can increase. So this is 1
of the things that the hemp industry, a lot of my clients
work, um, hard to prevent whether it be by storing products
in a cool environment. Um, and certainly ensuring that the
chain of custody and the certificates of analysis and and
other documentation are accurate.
Okay. Uh,
Uh it's it's wrong. Relax. Yeah. So uh, I I'm understanding
what you're saying. So essentially you end up over 0.3.
Then we're we're talking kind of business and not I'm sorry
we're talking marijuana and not hemp in basically
sure, absolutely if you have, if you have a product,
whether it be, um, cannabis flour, cannabis, you know,
tincture cannabis gummy, whatever the pro product going to
be and that that product tests, um, properly tests there's,
there's a debate about proper testing methods that but it
tests. And that product is more than 0.3%, Delta, 9 THC,
marijuana, no more than part. 3% T, Delta 9 THC exempt,
thank you. I want to recognize uh, vice mayor Bernett.
Much uh Mr. Chairman and um you articulating it. This very
I'm learning a lot listening to you. You're very you're
very good. Uh
The articulated very well. Um, thank you. So
2 things, uh, 1.
I think that.
everyone in this industry should have consumption on
premises, um, and
The the marijuana dispensaries and also these hemp
dispensaries, we should have consumption on premises. So I
want to ask about that, but before I ask that, is it do? Do
you think that
There's 3% can can the marijuana dispensaries right now?
Um, the cannabis dispensaries that are that are active
right now, are they able to sell this? 3% hemp, are they
able to sell hemp?
You know, I I believe so with regulations and I will answer
that in 2 ways. So first of all, I I I'm not aware of any
prohibitions on a, a, a state license marijuana company
selling a hemp product. Um, I I may be corrected on that.
There may be some product categories um that they can or
can't sell but I believe there's no restriction.
Additionally and I think, what's maybe more important is
there are no restrictions on a marijuana company opening a
hemp division that that specifically sells and promotes
products. And in fact um 1 of the largest sort of changes
that we've seen both in Illinois and Nationwide are um,
marijuana companies, um, that are opening hemp divisions
and they do this for a number of reasons.
Again, this is a federal legal product. So the banking
issues that you hear about are not present, the credit card
processing issues are not present, uh, the massive amounts
of resources, um, where financial and otherwise that are
required in Most states to obtain a marijuana. License are,
are not, uh, required and, and so on and so forth. And so,
a lot of marijuana companies are saying probably, excuse
me, and probably they're not being regulated either. They
don't because it's not, you know, it's not part of their
cannabis uh, license. Right. So they probably don't have to
to go through the testing and all of those things to be
able to sell this and they probably not paying taxes on
that either, right? Well, the hemp businesses, um, are are
subject to regulations that both the federal level and
state level? What we see right now is different states have
different types of regulations. And that's a burden that
many hemp industry. Um, businesses have to deal with is
that they are are subject to regulations of multiple
different states, right? So, they are subject to
regulations and they and they are taxed. Just like any
other business. What?
what what marijuana companies face is, is a, is a, is an
owner's tax burden in the form of of section 280e, which
says that a marijuana business or any business engaged in
selling products that are scheduled 1 or schedule 2, um,
cannot take the normal cost of of business, you know, if
you open if you have a shoe store for instance, you know,
and you you you can deduct your rent and your payroll and
your and and and so on and so forth, you can't do that in
the marijuana industry. And so marijuana companies have
have understandably um you know, struggled under the
burden the hemp industry does not struggle under this burden
because um the hemp is not a controlled substance at all
and so 280e does not apply to them and so the so the the
kind of pulling back to my original point. A lot of
marijuana companies both in Illinois and throughout the
country are pivoting into or expanding into the hemp
industry because they have the the resources to do that. Uh
and there's nothing in the in the in the in the hemp laws
or the hemp industry that prohibits them from doing that.
So this is truly um a sector of the Cannabis industry. That
is open to all and it really I believe the hemp side of
things represents the future of cannabis generally. And
we're not there yet but on the path to sort of full and and
of full and, and complete legalization. The hemp path
really represents an opportunity to, to, to fix some things
that maybe were were, uh, weren't done appropriately in
the, in the initial days of marijuana, legalization. So it
sound like that, it sound like the marijuana industry, or
the Cannabis industry can move into him industry.
But we won't get the tax dollars off of the hemp industry
and and regulated because we're not regulating it in or
taxing it right now. So if we tax it right now in regulated
right now it won't just cover the hemp people. It'll cover
the marijuana people who's going into the hemp industry
also.
I I I think what I understand is that the the the approach
and this is the approach that's used in a lot of states
with with hemp regulations, is that there is a special tax
that for hemp, um, products, um, and and that they're, you
know, there are regulations as I understand Alderman,
Hall's approach is to is to enact, what what we refer to as
the 3 pillars of Regulation, which is to ensure that the
the products there's age verification, the products are
manufactured safely and using verified processes and that
labeling and marketing is done, um, appropriately and
truthfully. So that consumers, adult consumers can choose
what they, what they, um, consume. And so, that's the
approach that I understand. Um, Alderman Hall to be a, um,
working towards, um, and also to tax the these products
appropriately. So that the government coffers do get filled
for this, um, for an, you know, having to deal with the
regulatory burden and and just to, to use with programs
that it deems to be appropriate.
Fantastic. Thank you very much. So so, but I wanted to say
this, uh, again, Alderman, what uh, what, um,
and maybe this is a question for, uh,
The uh Commissioners as far as the consumption on premises.
premises. What's the deal with having consumption on P
premises for for both? Uh, the Cannabis industry and also
the health industry. So today in uh, vice mayor, what we're
going to do is um we are going to answer that question but
we're going to answer questions at the end.
Um, because we want to get to immediately. That's the first
question, Vice chair. I mean, vice mayor uh, to our
organic, um, chemistry, um, expert who will talk briefly
about, um, what exactly goes into our testing. And then
shortly after her, you will begin to hear from our
commissioners uh both on regulation with our health as well
well as our licensing. Um, and again, anyone who has any
questions that you might need to answer my colleagues, you
can email me them and we make sure that we get the answer
to you but briefly can we answer? Uh, Vice mayor's
question.
And and I I I was asking that question because everywhere
you go you smell marijuana, right? You can drive down the
street and you can get a buzz just because somebody next to
you with a smoke filled car, right? And which tells us that
people need somewhere to be able to, uh, consume these
products outside of their vehicles or on the street and,
and to help everyone else. It's just like people smoking on
the street or smoking in your home. If we had a place for
them to consume it, I think it would be helpful to everyone
both Industries, cannabis and hemp industry. So that's why
I was asking that.
Uh, thank you, uh, vice mayor, uh, to the best of my
knowledge. Right now, there are no restrictions around
where people can use cannabis uh, medical or recreational.
Um, for now hem we're just getting started. Um, in terms of
of what are the regulations that will be viable for him
after the product. After the plants leaves the farm.
uh,
after the product, after the plants leaves the farm.
There is no regulation at the moment and I think that the
opportunities there um, are endless, but it is.
Pretty much right now. A blank slate. Uh, so
tobacco has some restrictions because of the dangers of
secondhand smoking.
Um, it took a lot of research and demonstration of the
harms of secondhand smoking.
to be able to restrict that to certain places uh right now
Research into secondhand effects,
Of those products are still limited. But I think that as
more research becomes available, uh, opportunities for
containment uh, can be explored
Thank you, vice mayor. Um, so just to add to what so
commissioner, can you just introduce yourself? Oh sure.
Shannon Trotter, local liquor control, commissioner for the
city of Chicago. Um, just to to add to what Dr. Eay said,
the Illinois cannabis Control Act does limit, where places,
where cannabis can be lawfully consumed. Um, what there is
the ability for an ordinance to be passed by each local,
Municipality authorizing legalizing consumption spaces. Um,
so so that's something that this body can certainly
entertain and, and propose. Um, and as part of any
regulatory framework for hemp, we would also be looking at
similar on-site consumption spaces. Thank you so much. Uh,
both Commissioners. All right, we getting ready to now uh,
shift this conversation to deal with testing uh, as our
commissioner, just alluded to what happens after it is.
Grown is very important and so to that end uh she's going
to briefly share Dr. Andrea Holmes she is.
A PhD in organic chemistry at New York University. And she
was a National Institute of uh Health postdoctoral fellow
at Columbia University in the Department of Chemistry and
Columbia Medical College college of Physicians and surgeons
in New York City. Uh, in addition to our work, she is also
the chief uh science typic officer of KD, uh, Pharma group,
global leader. With facilities in Germany, Norway United
the
UK Canada, Peru, the United States, China, Brazil, Korea,
and all throughout the world. And so she's going to give a
brief presentation. And then after her we're going to hear
from the home team. The commissioner of Public Health as
well as our acting Commissioner of bacp along with
questions, that will be answered by those who I will
introduce after this presentation in front of me. So Dr.
Holmes please uh, share whatever it is that you want to
share.
And actually today I serve as a subject matter expert on
synthetic cannabis and not on the testing part. However I
am able to answer questions about testing, if there are
some questions coming up about that, but I was specifically
asked to give subject matter expertise on synthetic
cannabis
Um, just to expand a little bit on the introduction. Thank
you very much for this very generous introduction. I am a
tenure professor in Nebraska with a PhD in inorganic,
chemistry. I'm also the lead author of 2, cannabis
textbooks and many peer-reviewed Journal articles including
on the pharmacology of kanabo. I have built several
several cannabis companies in the US in Germany. And I
serve uh for a global pharmaceutical and dietary supplement
company where I lead a team of international professionals
on dietary and infant formula ingredients.
I also co-own 3 hemp dispensaries in Lincoln Nebraska, I
believe that my credentials and professional background
allow me to offer an objective scientific opinion on on
science, on synthetic versus natural kanabo.
I would like to point out all over the states. There is a
lot of controversy around the word intoxicating synthetic
kanabo.
The word synthetic is typically associated with designer
drug molecules that are not occurring naturally in the
plant or in nature. But they bind to the same receptors as
cannabis does.
The term first arose with organic chemistry professor, John
Hoffman from Clemson University, who worked on many new
molecules.
And synthesized jwh 18 which later has shown to have very
very highly potent and negative health effects.
Without Professor Hoffman's knowledge. This drug was later
introduced onto the black market and was given the street
name. K2 spice or bath crystals, which is also a synonym
for synthetic canoes.
It is sold illegally as an herbal incident, plant type
material. And since then underground Cooks have created
hundreds of illegal substances by poaching, literature from
Publications and patents. And these come, these compounds
are a big problem in health concern.
However, I would like to clearly distinguish the
difference.
Kanabo from federally legal, hemp are not comparable to
this type of synthetic design or drug molecules.
They are completely different in chemical structure and the
effect that they have on the central nervous system.
Furthermore hemp, derived THC isomers are prepared from
naturally extracted CBD.
It's important to distinguish these synthetic cannabis like
K2 and Spice from naturally occurring kanabo like Delta 8
THC. Its isomer and other minor kanabo because the
consumption of designer drugs can be dangerous while kanabo
from Cannabis has been consumed for hundreds and even
thousands of years for Spiritual religious and health and
wellness reasons.
Furthermore surveys have shown that consumers favour hemp,
derived kanabo, like Delta hthc because they can self treat
multiple conditions and have access to inexpensive natural
alternatives to pharmaceutical prescription drugs.
Innovations in science and technology is driven by
mimicking. What's happening in nature?
And in the case of hemp chemists have learned how to
reproduce these chemical conversions that are happening in
the plant.
Compounds like Delta, a THC can be prepared in the lab by
chemists by using legal hemp. Derived, CBD and applying
conditions such as heat Catalyst solvents to isomerize CBD
to THC.
This is very similar to what is happening in the plant, in
the presence of light enzymes and molecules that rearranged
in molecular structure and electronic arrangements to
achieve different states of stability.
Let me say that this is not novel to hemp. In fact, many
naturally occurring compounds are now prepared or processed
in the lab
Including most vitamins, melatonin biotin vanilla
flavoring, decaffeinated tea and coffee, aspirin and much,
much more, these controlled industrial processes are widely
used in the pharmaceutical food and dietary supplement
industry to allow access to Pure compounds at high volumes
and
Prices. That would otherwise be prohibitive. If these
compounds were extract extracted from the source material
like hemp.
Whether a kanabo is naturally extracted from hemp or
prepared in the lab, the result is the same. A molecule is
a molecule and there's no difference between a synthetic or
a naturally, derived kanabo
To ensure consumer safety. CBD. Derived kanabo coming from
legal hemp containing should be tested at third-party labs
to assure that they are compliant less than 0.3% Delta 9
THC program program. Dime Mass
They should also be free of solvents, Metals, pesticides,
and microbial. Contaminants
it is also important to Source these types of kanabo from
reputable manufacturers with good. Manufacturing practices.
Process controls in place and standardized Sops.
Research and scientific studies on Delta a THC and its
isomer and minor kanabo are still limited when compared to
other kanabo like CBD or Delta 9 THC.
The novelty of these compounds as well as the regulatory
uncertainty has stifled academic research in this area.
However, we do have some preliminary research that has shown
shown promise of CBD. Derived synthetic, Delta ATHC for
nausea in pediatric cancer, patients undergoing
chemotherapy
Finally, in my personal experience, as and as an owner of 3
hemp dispensaries in L in labrasca.
I attest to the fact that my customers, many of whom get
referred to me by physicians they purchase hemp derived
compounds like THC, isomer to help them with Sleep Quality,
feelings of anxiety, pain, sobriety, and mood disorders.
In conclusion. It is my view that reasonable laws and
regulations are needed to mitigate any risk using Delta 8
THC, isomer and minor kanabo particularly around the
quality of manufacturing practices, testing, packaging,
dosages, labeling marketing and minimum purchase age. I'm
happy to answer any questions.
Thank you so much. Uh, again you all we're going to answer
these questions at the end, I want to acknowledge uh, our 1
of our members, uh, Vice chair, uh, Conway on 34th. And I
also want to recognize number. But here, Alderman, Byron,
C, Cho Lopez at this time, we want to hear what is Chicago
putting forth. And again, you all, uh, at the beginning of,
this is been all about our children, regulation, that's
safe and also make
Make sure that we include those who've been excluded. And so
to that end, I would like to introduce uh Dr. Eay, she's
our Commissioner of Public Health. Uh, at the end is our
commissioner acting Commissioner of bacp Ivan kapali.
Uh also we have Jason knight uh Brandy Nance in Jennifer
Weiss who are in the Box, our local business owners. Uh and
we also have Max bovich. Deputy Commissioner of bacp
Shannon Trotter, local liquor control. Commissioner bacp,
Kate McMahon, director of planning research and
development. Cdph and Joel Flores first, deputy director of
Finance again thank you all so much so Dr. E could you
please share with us?
Thank you, chair Hall. Uh, Vice chair, Ramirez and members
of city council. I am the commissioner of the Chicago
Department of Public Health. My name is Dr. Simbo eay.
So cdph has a mission to keep Chicago safe and healthy.
Safe and healthy.
And the way we do that is in very different ways, but we
are responsible for identifying health risks.
And mitigating those risks.
The way we do that many times is through the enforcement of
Health codes.
So if you go out and buy Taco, we want to be sure that you
are buying tacos, not buying norovirus.
If you go out and buy ice cream, there is a code that says
this ice cream must be free of bacteria and contaminants.
We have health codes for swimming pool tanning food,
establishments. We do not have health codes for hemp
so, what I will be sharing with you today is the product of
of many months of research and collaboration, uh, our
health policy experts, our Health Equity experts, our
regulatory experts, our epidemiology experts have all
contributed to these findings.
I am a Doctor by training, my expertise is population
Health, which means my expertise in assessing risk to
populations and mitigating those risks. So to get started,
I want to be sure that our conversation is centered. That
we are not comparing apples and oranges, you have hired a
lot of what's been thrown out today. Hemp cannabis
marijuana,
Hemp and marijuana come from the same plant cannabis.
There is a difference and the difference is in the THC
content.
C. H c is the substance that makes you high.
Hem, is not supposed to make you high, because it naturally
contains very small amounts less than 0.3% of THC.
When you grow hemp.
It is defined as a plant that contains less than 0.3% of
THC. Again THC is the substance that makes you high. There
are many different types of THC. The cannabis plants
contains over 500 chemicals. All kinds of thc's are in
there. The difference is that in him? They are in very low
quantities.
Delta 8, Delta 9, Delta 10 thc's you hear about thc's all
the time. So I want you to be sure what tat is now. Our
findings in terms of health risks,
I want to invite you into our world, a little 2 questions
that I want you to center. It doesn't matter what you're
buying it is always, what is in it and how much of it is in
it? What and how much it doesn't matter if it's Tylenol?
Or.
Corn or Leah. What is in it? And how much is in it? Now I
am going to start with my first slide here.
Now, what isn't it?
And how much is in it?
the first thing there,
Hemp can be used in many different ways. Smoking vaping
drinking eating it can even be in brownies.
What isn't it? And how much is in it? Now the first product
product there that is Delta. 8, infused 15%, 150
milligrams. The second product. There is a gummy, you will
see the THC content at the bottom. There, it says 800 mg.
There is a can, which is a drink that also contains hemp.
We have tincture and we have drops.
Health codes are not available to help. Us, determine are
these things good or bad? How much
Should be in it and what should be in it. These are the
gaps that we are trying to plug
For us to keep Chicago, safe and healthy to keep children
safe and healthy. We have to be specific about what should
be in it, and how much should be in it next slide.
Now.
this is an example of the very THC content, if you are a
consumer
And you want to buy hemp.
Now, and you see this?
In the middle diagram, there are 2 red arrows. The bottom
red arrow says, contain less than 0.3% Delta 98 C. Now that
is legal 0.3% data. 98 is what is hemp?
Now, what we are confused about is up there, the up Arrow,
says, 25 mg of Delta H THC.
Should that be in it? How much you be in it? We have no
code that guides the consumer.
Now, it is not just Delta 8 or Delta 9, that isn't it.
is also a circle there that shows the range of things that
are in it. All kinds of thc's are in there.
And then at the bottom it says total cannabinoids. It's
about 34.6%.
Is that good?
Is that bad? We have no regulatory framework to help us
decide?
Yes.
We heard earlier th I don't, I'm learning. So th C THC,
Delta 9. And then you also pointed to Delta 8. Yes, can you
explain
The difference. Yes. So Delta 9
is the naturally occurring THC. That is present in both
marijuana and him.
Delta 8 can also occur naturally in very, very, small
amount. But Delta 8 is supposed to be less potent than
Delta 9.
But what happens is, it is extracted from CPD CBD which is
not intoxicating at all. It is chemically converted to
extract Delta 8 and concentrates, Delta 8.
so,
these are the practices that are going on.
Um, that are indicating some health risks.
That we want to be able to address.
Uh, what we want consumers to know is what is in it and how
much is in it?
Um, if you are buying a hemp product, you want some idea
about what else should be in it. And this is what we see.
Now hemp is not supposed to be psychoactive or
intoxicating.
In its natural form. This is why it is allowed to be
cultivated.
now, the first box there says, euphoric,
3 out of 5.
Right.
Active relaxed. Happy Etc.
now, if a kid buys this,
We want our kids to be happy, we don't want them bouncing
off the wall.
Um even if it is Coke or Coca-Cola or soda, we want to know
how much should we let them drink? Or should we let them
drink it at all? These are the questions for me as a
health. Commissioner next slide.
So this is what we have found in any Industries. They are
good actors and they are Bad actors.
We want there to be a health code that can help us
determine who the Bad actors are.
right now, like I said before, once these plants leaves the
farm,
it is free for all. There are no regulations to help people
choose what they are consuming. We have regulations for
alcohol, we have regulations for tobacco, we have
regulations for ice cream.
Why should we not have regulations for him?
So, these are some of the reasons why we are worked.
Hem should not be a problem in its natural state. And yet
the CDC, the FDA idph have issued Health alerts saying that
that some strange things are happening mostly related to
Delta 8 and other um thc's that have been consumed.
There has been report of hallucinations vomiting Tremor
anxiety. Dizziness confusion loss of consciousness. Yes,
sir.
Testing thank you. As you're going through it and maybe
you'll say this at the end.
are are the side effects that we're looking at related to
the difference between Delta 8 and Delta 9 or
The, the concentration of those.
molecules once they've been extracted, both
okay, those
And content, those are the 2 things we need to Center all
the time. Like I said before, telling all might be good for
you, but that doesn't mean you take 10 tablets of it, you
destroy your liver. So those is always important and
content is always important. Now, all of this side effects
that have been reported have been associated with synthetic
kanabo now is it the synthetic and amino itself? That's the
problem. Or is it the dose or is it the contaminants? These
are the things that we would like a regulatory framework to
help us decide where the boundaries should be next. Slide,
please.
Now.
There are public health concerns.
And they provide opportunities for regulation.
Some of the photos I showed you before, show gummies, show
curtain, characters, show things that are appealing to
young people.
The public health implications of Helm products continue to
be studied. We don't know everything just yet.
But controls regulations and standards can address the risk
to Consumers. I keep using the example, because we're in
the health code enforcement business, we review
A lot of things that people consume to make sure they are
safe and they are healthy and that's what we want to do
here.
The things that we already know are a problem, we want to
be able to regulate it.
There is an absence of safeguards using other Industries
such as Leo, we want to know what isn't it and how much
isn't it? And having a permitting process like we do for
many of our vendors will help. Us know what isn't it and
how much is in it?
There is, there are marketing features that are attractive
to Young.
People we don't sell legal to use, we don't sell tobacco to
to use, if this is psychoactive, if it makes people high,
we do not want children, we don't want it to be marketed to
children. We don't want it to be confusing to children and
we believe, regulation will help us address that because it
has helped us address it for like, um, Leah and tobacco and
other substances number 3, lack of standard manufacturing
process. So the the questions olders are asking, is it the
quantity or is it the product, the manufacturing standards
Can help us address those things. This is how it should be
manufactured. This is these are the things that you can add
to it. This is the process that you can use for it to make
it safe and to make it healthy and finally on verified
labeling and doses that can lead to over consumption. If
label something, as hem as 0.3% THC, it should not be
intoxicating. So why are people having hallucinations?
There are other substances in there so we want labeling.
To be clear. So people know what they're consuming. People
want to know, what isn't it and how much is in it? So we
don't want over consumption because people are confused or
people don't know what it is and this lastly these are the
reasons why we've made this recommendation next slide.
Please.
For regulation, these are opportunities because we do this
on a daily basis for several other products.
Retailers at a minimum should have permits that. Help us
know what is in it and how much is in it.
Age restriction. At a minimum, we don't want young people
to be buying candy, and then they are bouncing off the wall
because they don't know what is in it. It should be
restricted to those who are 21 and older like other
intoxicating, substances point of sale warning. Um, like we
do for other substances.
Now there are also other opportunities. Like vice mayor was
recommending. Manufacturing is another opportunity,
ensuring good manufacturing practices, so there are no
contaminants. We have had cases where rat poison have been
detected in some of this products. So product testing
Set maximum dosage, packaging requirements.
Strict control of contaminants and chain of custody and
inventory. Tracking, these are some regulatory
proposals that we have made. So that as the commissioner I
feel like this is safe, this is healthy. And people know
what isn't it and how much is in it? Thank you.
Thank you so much, commissioner.
Um it's okay to clap for clap it up for Doctor EJ. Um,
So we want to have a point of clarification. Yes, sir
Alderman, Martin.
Yeah. Thank you. Commissioner. I was hoping you could speak
a little bit to for this. Um this uh page you have. In
terms of it says, examples of very THC content how the
packaging right here, especially in terms of how it could
impact recommendations is similar to or different from, um,
what's currently in place right now with regard to what you
would get at a cannabis dispensary? Um, I'm specifically
interested in this part, 1 of the 2, um, read, uh, are
It says, serving size 1, gummy 25 milligrams, Delta a THC
and maybe it's not Apples to Apples. Um, but I just pulled
up a random, um, dispensary near my community, where it
lists some gummies, and almost all of them. It looks like
it's a total of 100 milligrams. Uh, 5 milligrams each. So
presumably 5 for each of the gummies. Uh, and it just says
THC. So I'm curious like what you're thinking about in
terms of maximum dosage and how that compares to what's
already in place with cannabis.
We haven't.
Definitive boundaries uh with a regulatory framework, the
research will be done to say what should the cutoff be for
the THC content for marijuana? Um, and for medical and
recreational Cannabis that what we're dealing with there is
Delta 9 THC
And there are limits to how much you'll be contained in a
serving. Now here, if you see Delta 9 t 0.3 is negligible,
What is not clear is Delta 8.
Now, we don't have any any regulations for how much of that
should be in it. And that is what we're proposing. Now,
Delta 8 is less potent, and so for me, just off the top of
my head, if Delta 8 is half a potent as Delta 9 then
whatever.
Serving.
It should not exceed, whatever is allowed for medical or
recreational cannabis.
At the minimum uh, surely be lower if we're saying hem is
not intoxicating. That is also a possibility, but right
now,
Um retailers are just retailing, they're just selling
because they there are no directions, there's no guidance,
but if we start to introduce the guidance, then, um, I
think we consumers will be better. Informed about how much
should of this gummy. Should I take right now? There's just
no health code. Have we done that with any other products
at the city level in terms of like setting standards based
on what it sounds like a lot of research around, um what
the what the maximum and minimums should be at the city.
We don't typically set the standards. We follow the
directive of FDA. The problem. We have at the moment is
there's no direction from FDA.
Um, with regards to him because again the assumption is
that him is not intoxicating.
um, and so now that we are discovering that there are
products being included in these packages that are
What do we do? Should we just ignore and the city take the
lead in trying to set some boundaries uh setting maximum
doses is not typically within the city's limits and if you
see our recommendations we put it um below. Uh, so there
are some things that are, like, entry-level based things
that we can do at the city, but then there are
opportunities for the state and maybe federal to also
supplement that with some of the manufacturing practices as
well.
Yeah. Um so we do have another section of the presentation
but I know we have a couple Elders. Would you guys like to
ask now, rather? So we're going to recognize Alderman
laspada, and then Alderman Vasquez, and then Alder me more.
Thank you very much, so.
A couple of quick questions and maybe you can speak to this
product in particular, because it looks like it's saying
the plant that this was made from contains less than 0.3%
Delta 9 THC.
The actual product that you're buying.
Has 25 milligrams of Delta 8 THC.
In each serving is that an accurate description? That is
correct. And it also contains other things. I think from
that perspective, like whether you're 9 or 49, like, that's
the challenge with the descriptions on here is that they
feel
uh, in a way contradictory and confusing, which
Having regulatory regulation on The Branding, on the
packaging. Also on the testing would be very helpful.
I want to go back and I'm, I'm kind of piggybacking off of
Ottoman. Martin's question here.
assuming that this product was not made or packaged in
Chicago, and potentially, it was, what is our jurisdiction
for legislating? The packaging of products as they're sold
in Chicago?
It is very complicated.
Um,
many of these products are available online.
They may be manufactured outside of the state even and we
may not have um control there. So our recommendations in
terms of regulatory framework, that's why separated into 2.
There are things that are easy for us to do at the city
level, but there are things that we also need partnership
beyond the city to explore. So the wholesale regulation at
the city of this product
Dr. Manufactured in the city or within the county, or within
within the states are opportunities for partnership to
explore how this manufacturing packaging, labeling things
can happen because not all of this is being produced in the
city of Chicago.
I appreciate that. Like I, I'll put some of my cards on the
table which is, I'm personally someone you regularly
partakes in a hemp based CBD product, particularly for
going to sleep. I find it extremely helpful. Also, try to
be a Discerning customer, so look for a product that is
thoroughly tested from an Isis ISO regulated testing
facility making sure that it's
Regulated.
I think.
I really believe in regulation and Taxation rather than an
outright ban but try and understanding for me understanding
our jurisdictional space and particularly how that
Collaborates with and or collides with Illinois's
regulatory framework. Feels like a conversation for us to
continue having but thank you for the presentation. Thus
far. Thank you so much and we want to recognize uh all the
investors. Yeah. Thank thank you very much. Um I really
appreciate this conversation. Have everyone here um, as
well as some of our colleagues coming out of the can cabin
cannavo closet, go team, um,
Well no but but there are members to that point. Like I mean
it's not secret, I have a medical card there's number
there's a number of us who consume? Not everyone says it
publicly so I do appreciate when we do the intent of why
it's legalized which is to normalize it across the board.
So I was being sincere in that even if I framed it
differently. Um,
I think this is an important conversation, and
I'll say it's it's very somewhat challenging being in the
middle of the hemp businesses, trying to establish
themselves, the social Equity businesses and the Cannabis
businesses that aren't social equity. And so,
Why? I why I have a certain feeling about it is
the problem somewhat manufactured, if the state legislation
hadn't been so restrictive to begin with, it wouldn't have
created a submarket and that's ultimately what we're
looking at. We're seeing that people in the Inception of
the, uh, cannabis legislation weren't even allowed to play,
unless they had millions of dollars front-end capital in a
business to get in, then you've got social Equity Partners,
who are here, who it took years for them to even get a
license and be able to do something legally, right? What
we're seeing with some of the businesses is the same
problem to a different smaller scale. They don't even have
the capital to get a license. And so they're trying to
exist.
Which is a reality, we should have all anticipated for and
the fact that the state was picking and choosing who could
get a license and make that. So limited that people had to
jump through hoops or check certain boxes of Partners to be
social Equity to the point that people who have licenses
are now selling their licensees because they couldn't have
the capital even start their businesses.
the tension between those different businesses trying to
coexist is a very real problem, and I think if we start
there, there might be an understanding as to why different
folks are just trying to make a buck as we incentivize
people in this country to do so and that's separate from
the people who are selling cannabis that don't have
licenses that are still on the street doing so,
The imperfection of the state law is what led to a lot of
this problem. And so, here, we are trying to figure out how
to sort that out now.
where it becomes challenging at our level is kind of where
the questions I had
Some of this is marketing, we talked about how the hemp
businesses are marketing. Things that look like it's candy
go to a dispensary, there's cannabis stuff, that's marketed
like candy. So this distinction between the 2 isn't
something that I believe is the issue. I think it is the
route to what you're talking.
How do we know what substances are in the products? How do
you have quality control and how do you allow people to try
to sort that out? So,
My question related to that is less so about how we label
it. We should. How do you enforce it?
Someone could say, hey we've got quality and this is the
amount of content. How does cdph your BCP even know?
Right? I don't even know if somebody were to sell moonshine
at a brewery. How do you even double check? What does that
look like? So I guess that's my first question. So we do
have our commissioner is a presentation. That's why we want
you all to stick around. That will go into very deep
details about regulation but he can answer that right now.
But if if I if I'm Orion like if you want to wait till
yours and the cdph like
we can do them both now. How do I identify the public
health component? It does exactly what we're trying to
figure out. I, I'll admit. I'm sorry, Ivan can't be acting
commissioner for bacp. I mean, we're we're looking for
Partnerships here. We're looking to um, partner with other
levels of government, Cook County, um, perhaps a state to
allow us to, you know, to teach us how to how to do this. I
mean we're new to this too and we we're trying to figure it
out. Um as we as we go, alright that's why we're having
this hearing right now to hear from from from the community
from to hear from you, how do we land at a common ground
here so that we can both everybody benefit from this? Yeah,
so our office has been drafting legislation and talking to
some of the different partners. I think the path of least
resistance is clearly the beverages, right? Like we know
that because the alcohol so heavily regulated in the
Distributors. There there's more controls in place there
and I think everything else becomes a little bit more
challenging.
Uh, so love to hear more. I think the other thing that we're
going to raise up and work on that hasn't been is when
cannabis was legalized. The city had the ability to
legislate consumption on site, right? So the other part
where there's attention between the businesses and cannabis
You could do a sell muffins at a, at a Delta 8, infused
place. Your cannabis businesses, can't do that because the
city never legislated it. So, um,
Want to learn more and figure out how to partner as we
figure out fixing those problems, which is causing this
tension among 2 groups. That I think should actually be
working together to get the state to do this, right? So
that's right. Thank you very much. All right, you had a
plenty of information.
For, uh, for for Dr. E, um,
You used a?
um,
A a bit of conversion between Delta 8 and Delta 9 is 0.5 on
the potency. Is that roughly accurate or do you just kind
of make that up to to use an example, the literature that
we have, um, indicates that Delta 8 is about half as
potent. Okay? Um, as Delta 9 so it is not as potent. And,
and the effects are a little more calming than your
euphoric uh compared to Delta 9. Uh but at what levels uh
and in what concentration, they're they're just
We don't know enough yet, fair enough. Yeah, that was I
didn't know if you just used that as a straw man number it
was based on some. I'm less familiar with the devil's,
lettuce relative to some of my colleagues clearly so
because based on my Millet time in the military but I
appreciate I that's what I was trying to get at. Thank you
so much again, we want to uh, recognized before we do
number uh, or more. Did you still have a question? Um,
before we go to that question, him has been identified as
legal federally, it's what's going in it.
Once it leaves the farm, that's the issue, which is why we
going to have our uh, acting Commissioner of um, bacp book.
Um, business Affairs. Tell us exactly why we're trying to
protect. Yes sir. Uh order me more. Thank you chairman. So
I just uh
And thank you, um, Alderman, um, Vasquez. Because that's
why I was going in terms and you answered the question and
you said, you know, trying to develop these Partnerships. I
don't, I mean, this is no knock at you. It's just not going
to happen. Um, and what I like when I look at swissers and
stuff like that, just in general no longer um answer how we
regulating those things?
Right now we're sure that that's a tobacco product, so we
have regulation against that.
How how, who's checking to see what's in it? So I'll be
more. So he just said, that's a tobacco question. Do you
have him questioning? No, no, I'm just asking a question.
Do we? We talking about? Of course, ultimate, um,
We do have a very strong tobacco team. That is part of our
enforcement group, uh, we're out. We're out there
responding to all kinds of complaints when when it comes to
Tobacco we have a partnership with the state of Illinois,
but we have our tobacco sales to minors program where the
city actually gets reimbursed for doing those checks. Uh,
we conduct covert operations. We have a contract with an
outside organization that provides us with, uh, people
under 21. So so that we can test the selling practices of
licenses, uh, tobacco licenses. So we do that at least once
a year, so every tobacco establishment in the city of
Chicago gets tested, they're selling practices get get
tested at least once a year as part of our agreement with
the state of Illinois. So we are very actively, always
enforcing, tobacco regulation here. This is an area where
we don't have any jurisdiction and so to get to the point
of when I'm hearing in the community 2 things.
How do we get rid of this Packaging?
1 in the communities. And does that mean you have to
regulate to get rid of the packaging? That's number 1, and
then number 2. How do we tax? Do we have to regulate in
order to tax? Uh I can answer the first question. Yes, we
are. We're trying to capture with this proposal with this
ordinance that we're proposing. Uh, is is packaging as as
well. The taxi, uh, question I would defer that to um, our
our colleagues in finance, but my question is, I just want
to be clear. Sure. I know we're trying to attack it. I
said, do we have to regulate in order to get rid of
Packaging?
We have to regulate to be to so that we can create specific
information around Packaging.
Yes yes, yes. Share with me. Their
1 more question. Commissioner in your presentation you
talked about a lack of a standard manufacturing process.
What in your mind does this look like given that you
already said that these products are coming from?
All over the country.
so what we have seen and and that is documented around,
manufacturing of hemp products is varied again because
there are no standards. We have seen products being
extracted by heat
products been extracted with Mercury products, having mold
products, having all kinds of contaminants um in the
manufacturing process now good manufacturing practices will
Direct on how
Um, THC can be extracted, um, and will also limit the
opportunities for contaminants. Um, so now manufacturing
process is not something that we typically do at the city
level,
Um so we're going to enforce that, right? Those are
recommendations, we're making for regulatory framework. Uh
the first 3 are the ones that are easier for us to do at
the city and then the others would require some partnership
and exploration for how those things can be.
Thank you. You want. No no no. Let's see. Actually cover
that. So I want to acknowledge Alderman Martin, but before
we do, we do have a presentation around regulation in depth
with licensing or packaging. All of that by our acting
commissioner. Did you want to hear his presentation? And
then answer your question. Okay? So at this time, we will
have our acting commissioner Ivan, caperi, uh, share with
us our our Regulation and Licensing structure.
good afternoon, chairman Hall chairman uh, chairwoman
Ramirez and honorable members of the subcommittee on
revenue and the committee on health and human relations and
other members of this body.
My name is Ivan kopali. I am the acting commissioner for
the Department of Business Affairs and consumer protection,
Uh, also known as bacp.
Joining me today from bacp is Shannon. Trotter, our local
legal liquor control. Commissioner, I'm also joined by Max
purich our Deputy Commissioner of Licensing and public way
who's in the Box?
We are here to express bacp support for ham regulation in
the city of Chicago and to propose a regulatory framework
that we believe will Center the safety and well-being of of
all Chicagoans.
Chicago Pride itself on embracing sustainable, economic
growth and innovation.
Hemp has immense potential to benefit our economy and our
local communities.
and by creating clear and Equitable and streamlined
regulatory framework, we can unlock new opportunities for
small businesses and entrepreneurs, while ensuring Public
Safety remains front and center.
Licensing and regulation will provide businesses with the
stability and resources needed to invest confident,
confidently, driving, Innovation, and create jobs.
Additionally a well-regulated. He hemp industry will ensure
that we meet rigorous standards, protect consumers and
preserve the Integrity of the of this emerging sector.
The sale of intoxicating ham. Derived cannab, cannabinoid
products such as Delta, 8 THC remains large in regulated
due to the federal and state regulatory gaps.
Currently, these products are often marketed to youth.
And can be prone to contamination.
But without a clear, uh, regulatory framework, there is a
lack in safety in evaluations and oversight which can pose
public health and safety risks.
The role of bacp will be.
To con to contextualize hand regulation, within existing
licensing and enforcement.
To develop a clear retail licensing. Schematic to ensure
Regulatory Compliance.
to ensure Public Safety in the head in the sale of hemp
derived cannabis products
To monitor product, labeling Packaging.
and clearly prohibit the sale of this product to youth
under the age of 21 along with any advertising, the gears
the sale of this product to our young people
We can create clear procedures for enforcement and license,
revocation.
The creation of of a licensing framework around hemp will
include the following.
Businesses, who want to sell these types of products will
be required. To hold a city issued hemp license.
The license application process and license requirements
will be akin to existing tobacco and liquor regulations.
This would include notice to the local other person and
Commander for input on. If the license should be issued as
well as the ability to impose plans of operations.
Distance restrictions around daycare and and schools. For
retail licenses will be imposed including prohibition or
retail hemp dealers from being located within 100 ft of a
school.
Child Care Facility or other location.
For children under 18.
in addition, retail hem, dealers cannot
Uh, be allowed and will not be allowed to be within 500
feet of a secondary school or a high school.
We will also impose additional restrictions on locations
with on-site consumption.
To ensure Public Safety. The sale of hemp, again, will be
prohibited from being sold to anyone under the age of 21.
We will require point of sale, warning information to
educate consumer and potential risks. We will require
product product product testing and labeling requirements
at the wholesale, wholesaler level.
We will set maximum concentration limits to prevent over
consumption?
We will prohibit products to be packaged like candy,
novelty items or with cartoon characters uh marked and
geared towards children.
Additionally, bacp the Chicago Department of Public Health.
Uh, in cooperation, with the Chicago Police Department will
have enforcement Authority.
The enforcement will include a 3, strike rule, scalable
fine range.
License revocation.
My apologies.
License revocation.
And violations will include selling to minors, selling
prohibited products.
Selling products without a license and failure to maintain
books and Records.
The ability. It would also give us the ability, the ability
ability to confiscate illegal products, and the ability to
do to do sale to minors thing operations.
in closing, we urge this body to think, critically about
the Regulation, and Licensing of hemp in the city of
Chicago,
And by taking the first step to proactively regulate this
industry, we can create jobs.
We can drive sustainable growth and enhance the quality of
life of our residents.
All while prioritizing health and safety.
I encourage collaboration among stakeholders to develop a
framework that supports innovation.
Furnace and growth.
And we can position Chicago as a leader in this
transformative industry. Thank you for your time, Shannon,
Max and I are uh welcome any questions?
Thank you, commissioner. So, we now have a list of Alders.
Um, we'll get you on Alderman. We're going to start with
um, Alderman, Matt, Martin.
Question.
Thank you. Um,
I have 2 questions, 1 bigger picture, are there any other
jurisdictions to your knowledge that you think have done a
good job stepping into the void, the way that you're
proposing the city to do?
The regulatory vote void.
Um, Kate.
Do you want to take that we've we've done extensive
comparison across States and and different jurisdictions in
terms of what they have done.
Yeah, so Kate McMahon, I'm the policy director at the
Chicago Department of Public Health as our commissioner has
alluded to we've looked at um, other jurisdictions across
the country. Thank you for the question. Alder person,
Martin. And I think what our, um, Commissioners, both have
articulated, really do represent the best practices. So
making sure that you're projecting sales to minors so
preventing sales to minors. Making sure that consumers
understand what is in the product that they are consuming.
So commissioner did a great job of talking about the
importance of dose and concentration, the product labeling
and Manufacturing standards. So between both Commissioners,
we've outlined what we consider to be the best.
Of this emerging field across the country.
And Alderman I would just add real quick. Um, that a a good
example is especially in the Beverage World, which is
obviously my area of expertise is really Minnesota. They're
They're doing a very good job. Um, our our craft, our
Illinois, Craft Brewers our our following their lead with
the strict regulatory procedures on testing, um, a sourcing
all of those things. So it's definitely something that we
have spoke with the craft Brewers about and, and they often
speak with Minnesota. But it's a, it's a great model to to
take a look at
Um, outside of the beverage uh context are their
jurisdictions that jump to mind that you think have helped
inform this in a positive way. Even if understanding that,
maybe you view, what you're proposing as an improvement on
that
And it's it's fine if if you want to, give it some thought.
Yeah we can certainly think about um what we could share
with you through the chair, but I think what I would offer
today is that we really have looked at it all and I would
say in a very comprehensive way and what we are presenting
to you is is the best that we can come up with.
Okay. And my other question is when it comes to enforcement
mechanisms both in terms of what other jurisdictions are
doing and what we're envisioning here. Are we talking about
additional inspectors that are needed? How are we ensuring?
I think that this is I think chairwoman Dow among others.
Got it this like,
What is what do you think will be needed to ensure that
what you are proposing actually operates, effectively in
practice, right? Thank you for that question, Alderman. So
we're exploring all of that all those options right now,
uh, with the program that we have with the state, um, for
the tobacco sales to minors program that I just mentioned.
Um, we, we covered 2 positions with the, with the, with
those funds. So what we're as we continue the conversations
and we're thinking about the cost of a license, um,
somewhere between tobacco and liquor. We have to figure out
that call.
How long is, how much is going to cost us to regulate? This
not only in the license application uh aspect of it but in
the enforcement area, so we are we we're thinking about
that too.
Okay. I I again just want to reiterate and through the
chair is fine because I know we're not dealing with
anything tomorrow. Um examples from other jurisdictions,
even if you think that their approaches are imperfect would
be helpful because uh I'm sure at least some of us would
like to separately speak with people. We know in other
jurisdictions to see what they would do differently. What
was well-intentioned? But doesn't work efficiently in
practice because I just think based on the, the different
ways in which labeling can happen. The ways in which we are
just stepping into the void in terms of testing and other
things. This strikes me as being much more a challenging to
do well in practice than my uh emiss initially appear to be
the case. Um, but thank you for your work sincerely. Thanks
in advance for our many information requests and thank you.
And I also like to highlight that um, through the
Departments we'll be potentially, unfortunately this this
ordinance so it's not going to fall on the ACP alone, if
I'm in our health and support with police,
Will be key for this understood.
Excuse me, Tyrone, Tyrone, Tyrone. Hey Tyrone, Tyrone
Tyrone. We we Tyrone this the last time like for real, we
know that you like to get stopped.
Again, Tyrone stop. So before we uh, move forward. A
question has been raised uh, about what's in him doctor. So
I want to bring Chris wear, who's the founder and CEO, CEO
of KCA. Laboratories hemp is not. The issue was, was in it.
You mentioned it. Chris, can you please? Uh he's on line
with us via Zoom. Could you share with uh us here? Some of
the things that comes out of him? That might have been
added that has caused such uh, concern especially when it
comes to our children. Chris, hey there. Hi everybody.
Thanks for having me and, um, happy to help you answer
those questions. Uh, I'm the founder of KCA Labs. Um, we're
an analytical testing and research facility specialized in
and kanabo and the kanabo space both in plant and finished
products and intermediate products. Um, uh, we occupy a
footprint across 49 states of the, in the US and, and in 40
countries, um, uh, when I developed the lab, I had no idea
that we were going to be, um,
Turning our science and our technology um and our methods to
to do testing into what we have today. Um, by example, um
You know, majority of lives. We've talked about a few
the products that we're uh have been brought up and
discussed indicated you know, 4 5, 6, different kanabo. Um
my lab. We we have the ability to to test and quantify uh
over 80 different kanabo at this point. Um and we're we're
finding new ones each day. So when you ask the question of,
um, you know,
Uh, you know, there were statements of say you, you know
what, what's in, what's in these products. Um,
oftentimes, I tell a customer it's
for it's about demonstrating what's not in your products in
the way of contaminants and potentially harmful other
kanabo, um, like a thco acetate, which is a non
non-naturally occurring molecule. Um, so the breadth and
the bandwidth of testing to include, um, the ability to
determine what's in products, but also show what's not in
them, um, is that the onus of, uh, of a business like mine.
And um, so we have expanded panels for residual solvents,
for pesticides, for microbials that in many instances, at
least in the hemp case, go go way above and beyond what is
exhibited in traditional marijuana testing facilities um
and and uh the the and our hemp customers. We also have um,
we also do marijuana testing the
Customers. Um, want that extend expanded panel, um, as a
demonstration of, uh, what we're discussing here today, um,
which is potentially harmful contaminants, uh, being
present in their, in their products. And so, um, it's
important to make that distinction that, um, it's, you
know, it's definitely important for for consumers and
like yourselves to, to understand what's in the products.
products. But most importantly from a consumer safety, uh,
standpoint, um, it's the ability to show what's not in
them. Um, to achieve this, um, is is not an easy feat
analytically from the chemistry standpoint. Um,
Uh, so, you know, it it involves and imploring very, very
high level Technical and Cutting Edge, testing
methodologies. Um, both uh with the way we we we repair
samples but also the the the method of how we test them and
the instruments we use to test them on. Um for example, um
on a kanabo panel um you know plants have a variety of
kanabo, there's kanabo acids like thca cbda cbga and their
neutral counterparts.
Delta 9 THC, CBD CBG, um, making that distinction, and not
adultery in them through the process of your testing um is
critical for a Testing Lab. Um, there's methods like a gcms
method for testing canevin that does a flame M. Ionization
detection will convert kanabo and be represented in a much
more elevated. Fash uh uh quantitative level on the report
then what is actually in the sample um that was presented
to the to the, to the lab. So that's an example of why it's
important to understand the distinction of how um of how
of how um, of how and what instrument and what methodology
is being used to test, um, constituents of of these
products. Um, I know we've covered a lot of ground so far
today and um, and, uh, so I don't want to occupy any more
relative time but um, it's it's a it's definitely, um, a a
chat.
Challenge to, um, bring that uh, information and present it
it to a panel, like yourselves, who, um, aren't chemists,
and don't understand analytical testing, um, in, in a, in a
form so that you can fashion, uh, responsible and workable
regulation. Um, I I can end there and open it up for
questions, uh, or or if you want to hear me, keep going on,
I'm glad to do that. So, thank you so much. So, um, just to
be clear as
We get ready to go back to our questions from our elders.
What we are saying is that again, the hemp is not the
issue. It's the substance added to the things that are not
being traced which is why we're proposing regulations on
labeling proposing regulation around licensing and
proposing uh, regulations that includes, um, showing
dosages that are indeed healthy and safe. And so, I want to
return back to the questions from my colleagues. Awesome.
So, we have next alderwoman, mana hoppenworth and then
alderwoman Lee.
Thank you, cheers.
Actually a lot of my questions were answered As you move
through the presentation. So I appreciate you bringing this
up Alderman Hall and also, uh, chair Hall and, um,
Rodriguez, I, uh, Ramirez. I, I'm concerned about this
issue because I'm I'm a healthcare worker, my physical
therapist. And, and when you said something about, um, you
know what,
Is being used in the dosage. It it uh reminded me of
Even simple exercises can be harmful, you know, and how
they're prescribed and also I'm thinking about my dad, who
is also a healthcare worker, who had issues with arthritis
and
you know, he's alone now without my mom. So he's buying
stuff online in these um bottles.
With hemp and I, I don't know what's in it. Um, so that's
concerning too. I should have brought the bottle actually.
It's, um, and then I'm also,
I'm looking at this as an an opportunity for Chicago to
lead in so many ways to protect.
Children and older adults. I have kids. So I'm concerned
about their welfare.
Um, I
I'm glad that chair Dell, and
Chair. Martin spoke on.
Regulations and how we're going to implement that. I'm very
very curious about that too. I'm um, I'm glad that we have
another Midwestern State to that's not so far away that we
can lean on. Um, I'm curious about
The ability, you know, something was said earlier in the day
day about how the state has agencies already in place. They
have a framework to oversee something like this.
And so, um, I am curious if we have to create new bodies
offices, um how many more inspectors we need? You know,
will that cost us in the end? And I hope that's something
that we will bring forward in more conversations if not
today. Thank you. So, thank you so much. All the want me to
leave.
Thank you chair. Uh thank you and everybody that's here.
Providing testimony. Um it's a really important issue as
all of my colleagues have said and I I have a appreciated
all of the, the work that's already been put into this.
this just seems monstrous in terms of the size and scope,
scope. Um, and it's really mind-boggling to me. That there
isn't any current federal level, uh, regulation on this.
Um, because what we're talking about right now is literally
creating it all and going it alone. Um, and that is not
something, I think any municipality should have to shoulder
at the end of the day. Um the amount of time that cdph has
obviously spent on researching this issue from a policy
perspective. Um, what it's going to take to come up with
what the regulation should be and then the enforcement of
it all and then what does that say about stuff that's
produced in other places? Because how do you regulate those
places? I mean you can test and then you can try to ban
them from coming in.
Um but there's the, the amount of uh, the amount of
opportunities are to skirt. Regulations is just so immense
that it it feels very daunting. That's not to say that we
shouldn't do it because I think doing nothing is
unacceptable as well. So let me be clear about that. Um,
it seems to me that the, the, the most,
Reasonable sort of comparison would be to Tobacco or
alcohol, right? Um and all of those started with Federal
Regulation, if I'm not mistaken, have have, we talked to
Federal Partners yet about like what? I, I'd like to know
just a little bit of the background on what conversations
have or have not gone on at the federal level about
regulating hemp, um, can anybody answer that here? I know
it might be outside of the scope of this conversation
today, but I think it's it's a reasonable enough question
for us to ask. Um, if we don't need to
you know, um,
Do this all on our own recreate the wheel. But if we're
looking at doing that, um, my other concern would be
at what point the federal or state level people will come
in and, you know, add additional regulation on top of that.
And if we're not sort of, in line thinking about that, just
knowing where they are, what that would do to all of the
work we're putting into this. Now again, it needs to be
regulated 100%, um, because we can't have things that are
available to young people today, that should not be
um,
So, does anybody know, is there any conversation at all
that we know of like, in the research that cdph has done at
their Federal level? Can someone speak to that?
Yes. So for for, oh,
Our commissioner go first.
Well FTA.
Commission for FDA. There is a series of things that have
happened, you know, the health alerts.
to just help people know that, you know, synthetic cannabis
should not be equated to Natural hemp because of some of
the the the signs that they are seeing and the Poison
Control Center. So there has been Health alert issued again
to help consumers be aware um, of some of the the risks
risks that could be inherent in, in this products. Um, the
also issued, you know, some guidance and health alerts. Um
again here information, you know, very recently, the
General issued a health alert about alcohol. Um that just
alcohol, um, that just helps consumer understand uh, and
providing information. So that is happening at the federal
level to just help people know that. There's, it's just not
the same product. The other things may be present in it so
that they exercising some caution, so that is happening.
Um, the FDA has also acknowledged that existing regulatory
framework for food additives. Etc, does not.
Significantly address some of these issues and so they are
still in the exploratory phase in terms of what those
guidance uh should be for.
Delta 8 products again. Remember that Delta 9 in hemp
natural hemp is not supposed to be intoxicating. So, Delta
8 when is synthetic or modified, um, what should the
recommendations be there? That is still ongoing
conversation. And we also at the at the state level, we are
in conversation. Also to see where there might be
opportunities for partnership. I also want to add to that
order. You want me to leave that in order to sell 1 of the
things that was might have been missed. But it's written.
Is that in order to sell him that has to be a license. And
then that licensing is coupled with testing that will
identify those bad additives to uh hemp that goes beyond
recommendation levels. Those people will not be able to
have licenses, they won't be able to sell, and they won't
be able to partake. And that's where the question. And
again, you just raised in and others have in this room.
Where is the model? Where is the proximity of others that
can identify those things? And I know that we have rod rod.
Could you speak to? Uh, he was, uh, speaking about
About the cannabis laws, that associated with, on the
federal level for assistance as alderwoman Lee mentioned.
Yes, thank you for that. I, I appreciate an opportunity to
respond to alderwoman lie. Uh, your question is, is really
important. Um, you know, I, I testified at the first and I
believe only, um, hearing that the FDA had on, um, cannabis
compounds and spoke about CBD and THC, what we've seen
regrettably as that the FDA has primarily and, and mostly
sort of stepped back from regulating, um, hemp and and,
and kanabo with the with 1, major exception. And that is,
it has sent warning letters to companies that market their
products for specific, uh, diseases. You know. So someone
says oh well well these products, you know, will help cure
Alzheimer's or baldness or whatever it is. And the FDA said
that that goes well beyond the scope, which it does for
natural products in this category that aren't approved as
drugs. Um, but what we've seen with the FDA not um stepping
in and and and creating a regulatory framework is that the
states have
By and large, uh, filled that vacuum and and that's a part
of where we are here today. Illinois. Um, is looking at hip
regulation, Chicago has an opportunity to create some, um,
but we see a patchwork of regulations throughout the
country. It's it's likely that the federal government will
eventually get around to doing this. Whether that's the
FDA. Um, there's been talk that it might actually go under.
ATF or that the new agency would be created, but at this
time, the, the feds have have largely stepped back.
Thank you so much Alderman. I lost
Thank you, Mr. Chairman uh, I appreciate the time and the
conversation today. I'm so sorry. Jeremy? I I didn't know
you wasn't done, I'm sorry. I don't want me to leave back
to her my bad. Thank you chair. And I I'll be quick but it
thank you for this. Thank you for the responses. Ivan, did
you have anything you wanted to respond to on that? No, I
okay. Yeah. Just looking for for partnership and and this I
think you'll get partnership no matter what here. I think,
I think Elder woman. If I could, please Shannon for a
moment. Um, so I, I think it's important to to
contextualize it, right? This is this is a substance that
can be regulated in a similar way to alcohol or tobacco. We
do know how to meaningfully regulate those things. We just
need to put the, the everyone agrees, the checks and
balances in place, which is the testing, the labeling, the
packaging, the concentration limits, and of course,
prohibiting the sale to to minors. So everyone knows the
formula, it's just how do we implement it? And that's where
we are, looking to our other, um, more
our local government Partners to not only regulate the
retails here, which is what you are most familiar with us,
in the liquor world, because the city Only regulates, the
retail tear tear of alcohol. But there are 2 other tiers.
There's a manufacturing tier, there's a wholesale tear
tear. So we will engage in those conversations with our
County or potentially State Partners to regulate that
wholesale tier, which really will develop these testing
labeling, um, and beyond that if things are even
manufactured or sold, we could restrict those items even
further. Just as we do with alcohol. And the best example I
I have of it is that the, the the airplane menu is the mini
bottles, right? Those are illegal in the city of Chicago.
Are they illegal in the state know? Are they illegal
nationally? Know, but we have created the most strict
regulation of those. So there is things that we can ensure
at the wholesale level and there's things that we can
further ensure at the retail.
Level just as we see in in alcohol and tobacco.
Thanks for that Shannon, that was really helpful. And and I
agree. I mean, the the Frameworks are there. We know you
guys are great at enforcement. Um, my my bigger concern is
just around
Establishing right, what those levels are, what the testing
looks like? Who do we hire to do that? Do we get a brand
new department that is responsible for doing that? And how
do we keep up? I don't have a good sense of the number of
businesses currently that, um, that deal in hemp currently
across the city. I think that there are a lot of different
different places that do that today and I, I think a
license is something that probably is very appropriate at
the end of the day. Um, as all of my colleagues who've
spoken today, we have big concern around enforcement and
just making sure that when we do this um that we're
prepared to have all of the resources that are needed to
ensure that we are enforcing this. Because if we're not
enforcing, um,
We're going to end up in the same place.
That's all I've got. Thank you. Oh sorry, go ahead. Yes.
Ma'am. Do you want me down?
Just to follow up on Alderman. Lee's question. Do we know
the number of existing hemp
uh, stores or licenses we have
I think that's um, something we can try to get you through
the chair. I think the industry has has some numbers on
that. Um, it's something that we actually dozens hundreds.
We have. I think it's, it's roughly under 2,000.
Thousands. Okay. Existing. Now, yes. Yeah. And that's not
an accurate number. Uh, chairwoman this is, um, based on
on, on, on, on some research that we did, but I mean, we
it's everywhere. And but without a license, uh, we can
capture exactly how how many uh businesses are actually
selling it.
All right. I want to Chairman Lawson. Yes.
Oh yeah. Well we're just going to bounce off of each other.
We do this all the time pat. Um
Retailers, right? And we're not talking about wholesalers
who's like, I mean, obviously I've got a brewery in my
ward. Um, they make THC drinks. I mean, and there are
people who are infusing foods and there's a whole line of
other things. I think the thing that as you rightfully
called out earlier, we're we're probably most concerned
with the retail sales of these, especially the potential
and what's happening today because it's unregulated sales
to minors. So I just wanted to make
That distinction so that number you're approximation is for
retailers. I'm assuming yeah yeah that was the number that
was provided to to us from the industry. So I I'll
certainly distill down to make sure I'm giving the most
accurate through the, through the chair. But I was told
that it was roughly 1900 points of sale points of retail
sale.
Right? If we can get that through the chair, um, from
whoever, um, along with where the stores are located, and
how many people they employ, uh, I would appreciate that
information. Thank you, absolutely. Before chamber Lawson
comes, I just also want to know. We're going to land in in
speaking to some business owners about potential Revenue as
well. Yes sir, uh chairman Lawson. Thank you.
Thank you. Uh, uh, subcommittee, chair. You've elevated me
again. I'm just a vice chair. So I appreciate that.
Um, I uh, yeah, I I have a couple quick questions. Uh, I
think, um,
Maybe, uh, commissioner Trotter everyone who's in the
beverage space? Here is also a liquor licensee. Correct.
Um, to your knowledge. I, I don't know to my knowledge, I I
think that lawfully the or without regulation the beverages
could be sold at places that do not hold liquor licenses.
Um,
But that's again highlights the need for the the regulatory
space here. But but everyone who's so every, uh, liquor
retailer licensed liquor retailer in the city. That's
selling a beverage is going through a distributor similar
to the way they buy, vodka or beer. I think, in some cases
that there's probably 6 or 7 of our well-known distributors
in Illinois that are Distributing the products, and then
there are other sources such as the Illinois, Craft
Brewers, which are honoring their regulatory structure, um,
for alcohol and, and doing self-distribution. So, I guess
I'd be curious if we are aware of any that don't also have
a liquor license and that could be through the chair. If,
you know, it doesn't sound like there's many, if at all,
But if, if there's any, it'd be good to know that sure I
guess it sort of believe is my other question and it's come
up a lot today and and and you can answer this. But could
you think of any other intoxicant product that isn't
already regulated by the feds or States? But that we
regulate,
well, I think that there's definitely products that we
again regulate more closely like, for instance, our our
liquid nicotine Banner flavored tobacco bands, we we
regulate them more than the state or nationally, right?
But, and, and again, but we are the last level of
Regulation. There they are already being regulated by the
feds little late, the state, right? And we say, you can't
have flavored near schools and you have to put a label and
you've got to be 21. Um, my point is, there's very few
other consumable products that the city is the
The only 1 regulating.
Right, I can't I can't think of any um right now. Um, I
know we do food inspection that you know we we test the
chicken based on the standards for chicken. We don't test
to see that it is chicken, right?
and and so or you know, or that it's organic or hormone
free, or we, we don't have those capabilities in the city
right now. And so it's a whole another level of Regulation.
Regulation. I mean, I, I've worked a lot with food
protection and liquor and I've worked with you guys a lot,
you know, that. But it's sort of, you know, we don't have
the ability to say, if it's unlettered or regular gas do
we, we don't test for that. So, when we go into this space,
that is so sort of fraught with unknown and chemical
compounds on location of origin, you know? I don't you
know, that we are really setting ourselves up to
Really go down the rabbit hole with what it's going to take
to find the chemists and hire them. That are be able to
test this stuff at the wholesale level. We pull it off the
retail shelves, too. Um, you know, the I we could do 21
only adult, packaging and warning labels right now.
But we're still not going to say that this product is safe,
right? Because the FDA doesn't say that this product is
safe. And and that's the if you, if you Google, Delta, 8
FDA, it's it's pretty obvious. It's it's where where
they're at? On it?
um,
so, you know, I that that's sort of my is anyone here from
Finance today?
Yes, we do. We have Joe in the Box. Great acting calm.
Thank you. So, um, my understanding is licensed cannabis
dispensaries pay into a fund that helps support communities
negatively impacted by the War on Drugs,
Correct.
It and then what is the city's distribution of that fund?
So it's the R3 IM on the board, right? And it is absolutely
that a portion of every um sale of uh get cannabis in the
dispensary Goes To None for profit which is the R3 board
led by our lieutenant governor and it's a map in the city
of Chicago in the area has just been hit by the War on
Drugs applicants apply, they receive uh, grant money to do.
Work to better communities.
So I would love to know through the chair through the
chair. What what that dollar amount is annually that we're
Distributing. And is it just city-based? Dispensary is
to city neighborhoods. Suburban or is it a state formula?
Yeah. It's a Statewide um well over close to a quarter
billion dollars. Um, and just the last draw has been about
40 million right in Grants. And so it is is very generous
back to, but it's statewide, right? So things from grocery
stores have been built in the bottom part of
The state as much as, um, organizations and neighborhoods
that do things after school programs boxing just as an
example of a few. That's, that's good stuff and, you know,
we talked about grocery stores. Absolutely. We want to get
you. So, I, I guess the question here is, would any of
these 2,000 retailers approximately City be paying any tax
into a similar fund?
Do we have the ability to even require that? So I think in
the ordinance as we get closer to drafting it in addition
to Alders having an investment back Inn menu right? When we
look at the neighborhoods that I'm talking about, the
traffic and infrastructure needs the both fans charitable,
as well as construction for neighbors that hasn't been
drafted yet. No ordinance. Today was about knowing the
facts. Sure. And I, I guess I, I can a question is, if we
even have the ability to do something like that, other than
just, you know, whatever tax rate, we decide that works.
Um, I'm also concerned about the cost to set this up, you
know? And and I think I said that already, um,
Is there?
Any sort of?
Industry standard testing, if I want to subject all of my
Delta, like my health consumables and toxicants to a lab is
is is it? Is it this ihba do? Do they do regulations or
testing? Is there a National Organization if you want to be
certified outside of any state federal? Oh yeah. Chris
where Chris can you answer that? He's online.
Hi there, happy to. Um, so there is uh, there's an
accreditation, it's called I ISO 17025 which which will
credit a lab um based off the method and their instrument
to uh a defined scope of testing the standardization of
What instrument is used and what method is used to to do?
That is not has not been standardized yet. There are groups
out there.
Actively.
Trying to work on that. Um, ASM is 1 there. Um, but it
needs to be industry specific here in the case of cannabis,
whereas um a broader application for um you know,
Testing testing, pesticides, and finished goods is
different from testing, pesticides, in soil samples, for
example. Um oh okay, I so no. Is the answer. The answer is
no, thank you. Um,
if we're talking about a license that is similar to a
liquor license. Uh, we have the ability to put moratoriums
by Precinct, or by Ward on liquor licenses. Is that
something we're talking about here as well?
I mean, we there's no ordinance drafted. We're, we're
certainly happy to, to have the conversations and take this
body's feedback as we look to the drafting.
So 1 of the other things in distance restrictions uh for
our state licensed, highly regulated cannabis business
operators, is that they cannot be within. I believe it's
500 feet of a storefront daycare. Only not a home daycare
schools, or 1500 feet of each other. Yeah. Um, are we going
to impose something similar on these same businesses? Yes.
And and another thing, uh, to your previous comments, I,
instead of moratoriums or we're we're discussing the
ordinance and and how it's going to look. But for sure what
we want to pursue is a 3 and 24 uh model, 3 V violations in
24 months can uh which you in danger of losing the license.
So that's something that for sure, tobacco tobacco. I have
no doubt that we can regulate it once, it's regulated by
once, it's regulated by someone else and put on a shelf
here like we do liquor and tobacco. I think we do a pretty
good job there, um, most of the time. Um, but it it's
getting to that point and I Dr. I think you made the point
and, and so did our first Speaker, actually, there's really
no regulation. Once it leaves the farm,
And that's what it has. Everyone kind of freaking out. So
um, I look forward to seeing what comes out here, but I
think we need bigger Partners in order to keep this if
we're going to allow this in our city to keep it safe.
Thank you, chair. Absolutely.
We have 2 Alders on the list. We have um, okay, our last um
Alder Alderman Vasquez.
Thank you very much. Um,
I'm always trying to figure out how we're going to
normalize certain products. I think as much as I'm hearing
the answers here,
I'm more and more concerned about our ability to do that. I
think there's
you know, for certain like Alderman Lawson had asked about
like,
Does the FDA kind of regulate before we do?
That's a challenge even with cannabis, right? Because
that's federally not legal if we're thinking about it. But
the larger point about what a body's ability to to actually
regulate to test.
I don't have a lot of confidence that the city could
execute on it. So as we're talking through the testing
part, right?
Let me find out what a different.
Right now you have, uh, nicotine, tobacco restaurants,
other things that you regulate, whether it's BCP or cdph,
right?
How effectively do you do? What's currently out there?
Meaning, if you've got all the restaurants that are have
applied licenses, you want to double check that they're
doing things properly.
How effectively do you cover a 100% of the actual Industry
in Chicago? Right. What does that look like? I mean, we we
are very effective. That's something that we uh I think we
stand out from the rest when it comes to enforcement. What
is that very effective? Look, like, is it 100% of
businesses? Every year are going to have a visit to double
check that. They're on point for tobacco is 100%. Okay. Uh
for other areas, of course we are. Um,
You know, complaint driven Department. Uh, we're not out
there singling and and, you know, just going after, uh, uh,
Industry, but we work with the community when it comes to
that. So but I think in UK educating is a is an important
part of this. Um, and, and it takes me back to the tobacco
sales to minor be program that we have with the state.
It's, it's a, it's a, it's it's enforcement and it's
education. Yeah, so the funding that we get from the state
actually covers both so I think education is going to be an
important part of this ordinance too. When you mentioned
that earlier, you said it was it was 2 people.
We have 2. Uh, we have a tobacco team, um, and we reimburse
the city for 2 positions, 2 to 3 positions. I'm not sure. I
can, I can double check on that 2 or 3 positions. How many
people were told on that tobacco team?
We have about 6, uh, tobacco investigators, but we have
um across trained Workforce where you know, we're uh short
in 1 area, we can always, you know, pull from 1 1 location,
1 another investigative area to help with tobacco. So all
of our investigators can do that, I think. And what's the
cost of that team? If you do share like, how much are we
paying for that? Hold on. I can get that through the chat
for you. Uh, the reason why I'm asking again, it's not an
again, it's not an indictment of any of the Departments.
It's just an understanding of capacity or lack thereof that
in. In a world, where right now, we just went through a
budget process last year where
Arguably. We know we're heading into a bigger deficit coming
this year and that's without Donald Trump. Doing what he's
going to do to all the different departments and the
funding to begin with that. Then when I think about how you
prop up and build a whole new department and get the amount
of people to effectively be able to enforce, that's the
challenge. I see and it's less about the marketing that you
can tell, right? You go to a store, you see the wrap, you
go, you go, this isn't right, you can find them. But when
it comes to what's actually in the product, The Chemical
Testing that is where I don't believe the city has a
capacity to do so and the parallel that I also think about
is
When cannabis got first, uh, made legal here.
Everyone became a doctor to then let you know that you can
get your medical card.
Right.
That became a whole another industry that was propped up to
justify getting to the point B in the right.
Similarly, this would play out the same way. I think, I
think you get to the point where there's some level of
regulation, on hemp,
then it's like, how do we test it and now, every single
person
Gets gets their slide deck together and says, hey, we get
to test this product and let you know, this is legit, wink,
wink.
And now you've got a whole different industry. We're going
to have a problem regulating. So I think when I think about
the effectiveness of city government to get it done
There's just a lot of challenges. So I do think again,
beverages make sense.
um, I think there's conversations about what consumption
looks like for legal, cannabis the more I'm thinking
through Delta 8, Delta 9 CBD. I think the stuff that's
non-toxic it makes sense, right? Your CBDs, I think people
largely don't have issue with when it gets to Delta 8, or
9, it gets murky.
And our, if the answer that I'm hearing from y'all,
Is, well the state's going to be able to figure out more of
this that's kind of what a state's trying to figure out
before us. Anyway.
Right. So it leads to a conflict that I think is going to
be a problem. So um, this was super helpful.
Uh and getting understanding what I think the city can or
can't do. So thank you very much for that. Yeah, thank you
so much. And to that end, uh, Alderman, 1 of the things I
do want to I mentioned that was I appreciate your applause
but we don't need it. What is missing?
is uh what was stated is that number 1 as we are building
this out which tomorrow is not going to be ready in
ordinance, is the help in Cook County, Health has expressed
their willingness to support um, because it's not just the
city, it's the county. So that's 2/3 and their gaps. And so
to that end, thank you for your suggestion. And tomorrow is
the answer is not going to be available, but this is what
today is about.
Part of that challenge is a legislative 1. So if you've got
nothing, drafted, then we have nothing to talk about. And
if we do have something introduced, that gets drafted then
that starts moving February. March, April. Yeah. With
everyone putting stalls on it because the lobbyists are
going to say, hey this shouldn't move. By the time you
actually have something we're already in, May veto session
and the state's going to figure it out anyway. So I think
we do have to have something written for people to look at.
Absolutely. And that's what the subject matter here in this
for so that we can open up the curtain so that everybody
can see what we see, unlike what we've seen done in the
past. So to that end, we have 3. Oh I'm sorry, chair woman
there.
yeah, I just wanted to thank you for even having this
hearing because I'm someone who did not really have an
understanding of the whole hemp industry and what some of
the challenges are Delta, 8, Delta, 9. So I appreciate
that. Um, I just wanted to make sure that as we're talking,
the 2000 or whatever the number is current,
Retail operators and whoever else is in that will be
grandfathered into any ordinance that is being put
together. Absolutely.
And the goal is that in the grandfathering, that they meet
the standard that in order to have this license, you have
to meet the standard of and in that 2000, arson, bad
players, right? In that 2000 are some of the reasons that
we here today. But that's the goal, absolutely. So in our
conclusion today, we have 3 uh local business entrepreneurs
who are immediately impacted by this. And as we said when
we started this conversation months ago, regulation was
what was leading us and not revenue. And so we do have with
us Joel. I acting controller but we have with us 3 uh
successful entrepreneurs, Jason knight, uh, Brandy n uh
Nance and Jennifer wise. And so I would like to start uh
their testimony, they have 3 minutes which is behind them
to bring us into your world of what it is that you do and
how it is that, you want to contribute, both to standard as
well as our sustainable economy. Thank you so much Jason.
Is this a microphone on great?
Thank you uh, council members.
Uh, thank you for the opportunity to speak today. I'm here
to advocate for the responsible inclusion and support of
hemp businesses within the city of Chicago. My career
background is in education. I was a teacher for 12 years,
got the entrepreneurial bug and and pursue uh to produce a
premium Tac infused sorbet.
My operation is thriving. My business is thriving, after 2
years of operations, I'm realizing that women and people
over the age of 35 can comprise of the majority of my
customer base. All of my products are lab tested twice. The
distillate is tested prior to use and the batches are
tested post-production.
Our packaging is on Jane and Mary's, uh, infused sorbet our
our packaging, uh, meets. Uh most national standards of
cannabis products, which feature, accurate nutritional
facts, QR codes for test results and clear dosing
recommendations, okay? Uh, there's a clear demand in the
city for a variety of quality, infused hemp products and
hemp Edibles, I personally began this journey with a 8000
investment uh and have since reinvested over 240,000
dollars to build my business.
It's deeply. Troubling to imagine that losing my
livelihood, due to inaccurate, and misleading statements.
So, I really appreciate all the information here today.
In conclusion, uh, supporting hemp business is not just
about Economic Opportunity, as we discussed is about
sustainability, health and Community growth. I respect I
respectfully urge our Council to consider the facts
recognize the immense benefits and Champion policies that
allow hemp businesses to flourish responsibly within the
community by having both safety regulations, and fair tax.
Structures. So thank you for your time and consideration.
I'm happy to answer any questions about what I do. Thank
you so much. Uh, at this time, Mrs. Brandy Nance. Thank you
so much.
Thank you. Um okay. Thank you. My name is Brandi Nance. I
am uh the owner of Brandy CBD. I am a nurse by trade. I
have a associates degree. I am a registered nurse by trade.
I have associates degree in applied science, and cannabis
studies as well as I'm pursuing, my bachelor's degree and
um into disciplinary studies with a minor in um
agriculture.
I am a small business owner and a multi-business owner in
the city of Chicago of Brandy CBD, which is a alternate
Wellness um alternate Wellness Shop um in Auburn Gresham.
Um we provide um safe alternatives to um pharmaceutical
Pharmaceuticals as a medical professional. I've seen how
these products can offer relief to people dealing with
chronic pain, anxiety and other ailments. Many of my
customer base are seniors looking for alternatives to harsh
Pharmaceuticals. And hemp products have been given. Have
been have giving them a safe natural way to manage their
ailments and my business education is number 1 because I'm
a nurse educationist priority. We prioritize ensuring that
our customers, understand what they are buying and how to
use it properly. Thoughtful regulations like these imposed
by um
Mr. Hall Alma, how will ensure that businesses like Minds
can continue to serve our communities with safe,
high-quality products that are properly tested and labeled,
um, beyond the medical. Um, benefits hemp itself has been
has opened the door for opportunities to my family. Um, and
other small business owners owners like myself to thrive
because um, because of this business, I was able to put my
children through school and also contribute to my community
where we provide um, integration into uh wellness products
and we do like blood pressure monitoring um, safe
consumption and things like that. Um but as you know,
breaking into the industry or the Cannabis industry has
been nearly impossible for small business entrepreneurs.
like myself due to strict regulations and the high barriers
to entry hemp products are a real path of people like me to
succeed and that want to help others. So I am in agreement
to
Regulation. I urge lawmakers to support Fair regulations,
that prioritize both safe. Um, safety and um accessibility.
We need policies that protect consumers while allowing
responsible business owners to continue to provide
essential products.
Chicago has an opportunity to set the standard ensuring
people have access to Safe effective Alternatives, while
creating economic opportunities for small business owners.
Um, I just want to thank you for having this hearing today
and thank you for your time. And I am happy to answer any
questions. Thank you so much 6, Ward.
Yes. Miss Jennifer Weiss. I'm sorry.
Hi everyone. Uh, thank you, Mr. Chairman and members of the
committee. My name is Jennifer Weiss. I am the founder and
CEO of Covington's cabinet.
Um, I was uh, asked to come and do a question and answer
situation. So, I wasn't planning on doing a full prepared
statement, but I can riff here,
Um, so I'm an industrial psychologist by background, I hold
a PhD. I never planned on opening a retail business. If uh
we'd had a conversation 6 7 years ago, I could never have
imagined. I'd be sitting here today and presenting on this
topic, but my journey began. Oh, they're showing some
pictures here. Uh, my journey began because my partner and
I have 2 rescued, Bernese, Mountain Dogs.
And my old girl who's now almost 14 and still going. Strong
came from a really rough. Uh, puppy situation in a bad
breeder and had terrible anxiety and I had her on specially
compounded Pharmaceuticals. I tried everything I possibly
could to alleviate her stress and some friends back in 2018
suggested, I try CBD for her,
And at the time with my background, I I thought it was
whoa.
But I thought, okay, I can give this a try. And I went out
and I, I found a shop that sold it, and I bought it for
and I gave it to her. And dogs don't have the same placebo
effect that we have. And let me tell you, it was amazing.
Um, it really profoundly impacted her. So the the drugs
she was on really gave her lethargy really um uh lessened
her energy.
All of that went away and I can't say it was like the
Panacea, it didn't fix everything, it just took the needle
down and she was able to function. I was able to take her
on a walk. She was herself
So, I was loving this product, I bought it again. Same
impact, I bought it a third time.
Even though it was labeled the same.
Didn't smell, right? Didn't look right. Didn't have the
same effect.
With my background, I started looking into. Well, what's
the deal here? I expected something that I'm able to buy
from a store. Would be coming from safe reputable sources
and there'd be a framework in place. There wasn't
And so I put my researcher hat on and started learning how
to vet products myself. A lot of the types of things that
you all have been asking about today because what I needed
to know and I was hoping I could hold up a bottle. I was
asked not to actually do any show and tell, but when I look
at a product, I now know how best to do investigation to
figure out. If is it, what it says it is, is there testing
that matches this product?
That didn't exist and we're talking to 2018209 you keep you
can keep going. Okay, thanks so uh so then I decided to
build the company I was looking for and so that was C's
cabinet uh Covington is the sweet boy right there that you
see. So he's the face of the brand. He uh, he the old girl
is Zeta, we keep her behind the scenes. She would never
want to be a shop dog. Uh, his rescue story, m means that
he just craves attention, so he's he's perfect.
For that. So the name of the shop is is Covington's cabinet.
We're located in Roscoe Village and we are an apothecary
style Boutique where we really focus on creating a safe and
welcoming environment to educate people and provide
consumer access to something that's scary and hard to
navigate. We do all the research so we've been honing our
methods for years here. There's no like perfect thing to do
but after years of this, we have a list. I know what to
look for for a product and I require these sorts of tests.
and those tests have to match the label, they have to match
the batch number if I don't see that it could be anything.
So, when we see these products up here, the pictures of the
trips Ahoy and the Skittles. Let me tell you, it makes me
so angry and I know so many other hemp businesses.
Are angry by that too, and they want them gone. It hurts
all of us.
I view those products like moonshine alcohol.
It could be anything.
They could very well just be trading out labels because hhc
is the hot new thing or Delta 8. I don't view can ofono
that are naturally occurring as inherently bad or I view.
What is the legal framework? Am I meeting that legal
framework? And my educating my customer's and my ensuring
that products are fully tested and that their labels match,
we do age gating for purchase. We uh I I love that you you
invited Rod kite on. I'm a bit of a fan girl uh he's now
termed something called the 3 pillar model which it ends up
that's what we were doing. So the 3 pillar model is that
you're looking for ensuring that your age gating
appropriately, that you are making sure things are
accurately tested.
Uh fully tested and that they're accurately labeled to
match and I won't go into all the details of how we do that
but I just want you all to know that there are a lot of us
out there that care very much about this and have been
trying to do this for years. And we started before this was
a conversation about. Should this be in 1 segment or
another? Um, I I I really hope that there is a pathway to
standardize. Some of the things that we do
So that consumers can continue access to really exciting
products. We're just starting to learn the possibilities of
this plant.
And so I think you for having me here today and I really
welcome any questions. Thank you so much. Are there any
questions that? Um our colleagues might have yes so uh vice
mayor Bernett.
And I know everybody's wanted to ask this. You don't just
sell things for dogs, right? Oh no, thank you. That was
yes. Um uh, sell things for people and pets, the pet model
alone. I mean, let's be honest. How many things you can
throw CBD into anything but that doesn't mean it. So uh,
doing people in pets has been come the model.
Is there any other questions that I might have from our
colleagues today?
Were you all as we get ready to um go first of all I want
to say to each of you all thank you for uh sacrificing some
of your time time. We don't get back and 1 of the things
things that we can say today is that we learned a lot, the
objective going back. As far as uh, starting this last year
was to teach and then to look at real regulation as well as
legislation. And so do we have work to do? Yes, we need
more people at the table. Yes, you've heard from a array of
ideas um, that we can begin to look into. But what I will
say is that this year we won't lose much time because we
want to get it right. And so even though you didn't hear
voices, uh we know that there are those who need to be at
the table and so what we can
Says that Chicago is including radically both regulation as
well as retail and businesses that were excluded time and
time again. So thank you all so much. Our next steps will
be to begin to draft the ordinance where everyone will
begin to see it. And we'll take every last 1 of these
considerations and to uh, affect so they're being no
further business. Uh, with this joint committee. Can I get
a motion to adjourn?
Motion made by Alderman lead to adjourn and Alderman
Lawson. All those in favor, say I
Seeing that there's none. Opposed the eyes have it. God
bless you all. We look forward to seeing you soon.